21st July 2025 - 3 min read
The implementation of the targeted RON95 petrol subsidy has been slightly delayed, as the government continues to review and refine the delivery mechanism. Minister of Communications Fahmi Fadzil said the policy is being carefully adjusted to ensure it does not place unnecessary financial pressure on the public.
According to Fahmi, every aspect of the rollout is being fine-tuned to make sure it supports the rakyat without causing unintended consequences. This delay comes after earlier reports confirmed the RON95 subsidy reform would proceed, making this adjustment a significant development.
The delay follows comments by Prime Minister Datuk Seri Anwar Ibrahim during a recent government retreat with Members of Parliament. The Prime Minister stressed that no policy should negatively affect the majority of Malaysians.
“The Prime Minister expressed his view that he does not want the implementation of any policy to negatively affect the majority of the rakyat,” Fahmi said during a press conference at Parliament on 21 July.
Fahmi added that this careful approach has led to a shift in the original timeline.
The planned RON95 subsidy rationalisation is part of a larger effort to improve how public funds are spent. Under the new system, only eligible low- and middle-income individuals would receive fuel subsidies, while higher-income groups and businesses would likely pay market rates.
For now, this delay means that RON95 fuel prices will remain unchanged for all consumers. This gives Malaysians additional time to prepare for possible changes in their transport and household budgets.
The delay also gives the government more time to explain the policy clearly, including who qualifies and how the new system will work.
Fahmi pointed out that the government had also made changes to earlier policies such as the diesel subsidy rationalisation and the expansion of the sales and services tax (SST) to reduce their impact on the public.
“In the same spirit of minimising impact, even the expansion of the sales and services tax underwent further refinements after it was announced,” he said.
This same approach is now being applied to the RON95 subsidy plan to avoid unnecessary burden, especially during a time when many households are already managing rising costs.
The targeted subsidy for RON95 is one element of the government’s wider fiscal reform strategy. The goal is to reduce subsidy leakages, improve efficiency, and ensure that national resources are directed to those who need them most.
Earlier this month, Second Finance Minister Datuk Seri Amir Hamzah Azizan confirmed that preparations for the subsidy reform were in the final stages.
The broader aim is to create a fairer system where high-income earners and large businesses contribute more to national revenue, while lower-income groups continue to receive the support they need.
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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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