By mid-2025, the government will implement a two-tier pricing system for RON95 petrol.
This planning was announced by the Minister of Economy, Rafizi Ramli, after officiating the National Statistics Day 2024 and the Pre-Launch of the Statistics Website last Sunday.
Under this operation, 85% of the people can still enjoy subsidized prices, while the remaining 15%, the highest income earners (T15) will pay market prices.
Unlike the diesel subsidy that uses the fleet card, Rafizi insisted that the RON95 mechanism will be upgraded to ensure smooth implementation.
With millions of beneficiaries, the government is doing strict screening to ensure that only those who are eligible to receive the subsidy can take it.
Discussions are ongoing with the parties involved such as the Petrol Dealers Association to ensure operations run smoothly.
This move was announced in Budget 2025 last Friday by Prime Minister Anwar Ibrahim, which is expected to save RM8 billion from government spending.
These funds will be channeled back to improve services such as education and health.
