Malaysia to Rationalize RON95 Petrol Subsidies in Late 2025

Malaysia Announces RON95 Petrol Subsidy Rationalization Plan Kuala Lumpur, May 29, 2025 – The Malaysian government has announced plans to rationalize subsidies for RON95 petrol, aiming to provide relief to consumers while supporting private sector spending. The rationalization is expected to be implemented in the fourth quarter of 2025, pending the finalization of key details. "The implementation of the rationalization of RON95 petrol subsidies in the second half of 2025 will provide temporary relief to consumers," stated a news report by Berita RTM. "It will also help support private spending during times of stable inflation." The government is currently addressing several outstanding issues, including the eligibility criteria and the mechanism for distributing the subsidies. While concerns exist about potential inflation-related price increases, the government assures the public that measures are in place to mitigate these effects through cost-shifting mechanisms. The rationalization is a significant step in managing fuel subsidies and ensuring economic stability. The government's commitment to addressing outstanding issues before implementation demonstrates a responsible approach to this important policy change.