22nd September 2025 - 3 min read
The government will reduce the price of RON95 petrol from RM2.05 to RM1.99 per litre, effective 30 September 2025. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the change during the Finance Ministry’s monthly assembly in Putrajaya.
According to Anwar, the new rate will be reserved for Malaysian citizens holding valid driving licences. Non-citizens and large corporations will not qualify and will instead pay RM2.60 per litre for RON95 petrol.
Each Malaysian will be entitled to purchase up to 300 litres of RON95 petrol at the new subsidised price every month. However, this cap will not apply to e-hailing drivers, who will continue to enjoy the reduced price without limits.
The government will introduce the new price structure in stages. From 27 September, about 300,000 police and armed forces personnel will be the first group to enjoy the RM1.99 rate. From 28 September, households in the B40 group, as well as M40 recipients of Sumbangan Tunai Rahmah, will gain access to the reduced price. From 30 September, the benefit will be extended nationwide to all eligible Malaysians.
Anwar highlighted that the initiative is expected to benefit over 16 million Malaysians, based on records from the National Registration Department and the Road Transport Department.
To enjoy the new rate, Malaysians will only need to present their MyKad and ensure their driving licence is active. No separate registration will be required.
Anwar advised the public to check that their MyKad chips are functioning properly before heading to the petrol station. He also urged motorists not to rush to the pumps on 30 September to prevent congestion during the transition period.
For added convenience, those using e-wallets such as Touch ’n Go or Setel will also be able to pay at the subsidised price without presenting their MyKad.
The Prime Minister explained that the subsidy will apply to all Malaysians, regardless of income level. While some may question why wealthier citizens will also receive the benefit, Anwar said the move recognises the collective contribution of all Malaysians.
He added that the returns from subsidy reforms will be reinvested into public infrastructure, including flood mitigation projects, to deliver long-term benefits.
Malaysia has kept the retail price of RON95 capped at RM2.05 per litre since February 2021. With the latest reduction, Malaysia’s subsidised rate will stand among the lowest globally.
Anwar compared regional fuel prices, noting that RON95 currently costs RM2.61 per litre in Saudi Arabia, RM3.22 in Indonesia, RM4.22 in the Philippines, RM5.68 in Thailand, and RM9.02 in Singapore. Only Brunei offers a slightly cheaper pump price than Malaysia.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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