RON95 Subsidy: Green Goals vs. Political Risks

Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad has warned that mishandling the government’s targeted subsidy initiative could cost the administration its power.
“I might lose my job, and the government might just lose power,” he said, adding that a political fallout could lead to the initiative being scrapped by a future administration.
The targeted subsidy plan, which includes reducing subsidies for RON95, widely used by most Malaysians, is expected to face strong public resistance when enforced later this year. Nik Nazmi described it as far more challenging than last year’s removal of subsidies for RON97 and diesel, which primarily affected wealthier Malaysians.
-full.jpg)
He compared this to the backlash faced by London Mayor Sadiq Khan over the expansion of the ultra-low emission zone (ULEZ), which became a controversial issue in a by-election. Nik Nazmi highlighted in his book "Saving the Planet" that such policies, if poorly handled, could significantly harm political support.
Despite the risks, Nik Nazmi emphasized that cutting fossil fuel subsidies is critical for Malaysia’s economic and environmental future. Fossil fuels have been kept artificially cheap, discouraging the adoption of renewable energy and electric vehicles (EVs).
-full.jpg)

Renewable energy is now more affordable than fossil fuels in the Asia-Pacific region, with solar power being the cheapest. Nik Nazmi hopes the subsidy cuts will push Malaysians toward sustainable energy and EVs, aligning with the country’s decarbonisation goals.
While aware of the risks, he remains committed. “It’s good for the country’s treasury and the environment,” he said.
Written By
Kumeran Sagathevan
More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!
JPJ Running Numbers
KUALA LUMPUR
VQH3994
SELANGOR
BSL6037
JOHOR
JYP6018
PULAU PINANG
PRX5469
PERAK
APE1526
PAHANG
CFE7457
KEDAH
KGD7958
NEGERI SEMBILAN
NEJ2654
KOTA KINABALU
SJP7148
KUCHING
QAB203N
Last updated 14 Jan, 2026
Fuel Price
Petrol
RON 95
RM 2.54
-0.02
RON 97
RM 3.11
-0.05
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.89
-0.05
EURO 5 B7
RM 3.09
-0.05
Last updated 08 Jan, 2026
Related News
Recycling: Malaysia’s EV Ecosystem Beyond Charging Station
While EV sales surge, the country is still playing catch-up on policies to manage the looming wave of battery waste.
03-06-2025
Resignation Chaos: PADU, Govt. EV Transition in Limbo?
Leadership change shouldn’t mean policy reset, but Malaysia has seen it happen before. Will history repeat?
29-05-2025
Almost 2,400 Wild Animals Killed On Malaysian Roads Since 2020
From 2020 to 2024, Malaysian road accidents killed 2,361 wild animals according to Nik Nazmi Nik Ahmad.
13-05-2025
Nik Nazmi: EV Transition for Govt Vehicles Begins Next Year
NRES Minister unveils guidelines to electrify government vehicles in stages starting 2025.
18-12-2024
Proton e.MAS 7 Leads ASEAN Meeting, Luxury EVs for Officials
Proton e.MAS 7 to serve as official EV for ASEAN Meeting, with premium EVs for high-ranking delegates
18-12-2024
Nik Nazmi - Targeted Fuel Subsidy To Boost EV Adoption! Where Are The Ministers EV?
Nik Nazmi has highlighted the potential for targeted subsidies to boost the adoption of electric vehicles (EVs) in the country
21-10-2023
Energy Transition Conference 2023 - Malaysia On Course To Achieve 10,000 EV Chargers By 2025!
The Energy Transition Conference 2023, a two-day event hosted at the KL Convention Centre, was inaugurated yesterday by YB Nik Nazmi Nik Ahmad, the Minister of Natural Resources, Environment, and Climate Change (NRECC)
29-08-2023
Will Targeted Electricity Subsidies Cost EV Owners More For Home Charging?
The PM recently mooted the idea of targeted electricity subsidies. Will this hurt EV owners who charge up at home?
18-05-2023
Latest News
Penang’s Water Taxi Service Delayed Over Safety Concerns
Penang’s water taxi plans are on hold due to safety and approval requirements, said Transport Minister Anthony Loke.
13-01-2026
Perodua Shifted 359,904 Units In 2025, Bezza Remains Its Best-Seller
Second national automaker Perodua capped off 2025 by shifting 359,904 units, Bezza continues to be its best-seller.
13-01-2026
Grab Tests Self-Driving Shuttles In Singapore, Malaysia Next?
Grab is letting locals in Singapore try out self-driving shuttles in Punggol before the service opens to the public.
13-01-2026
Proton Exploring CKD and Local Partnerships in Algeria
Proton is assessing a phased entry into Algeria starting with dealer partnerships, eyes local assembly (CKD) next.
13-01-2026
KTMB Launches Festive Train From KL-Padang Besar This Chinese New Year
KTMB is rolling out a special RTSM train running between KL Sentral and Padang Besar this Feb for Chinese New Year.
13-01-2026
Jaecoo J5 Poised To Galvanize O&J Malaysia In 2026
Fresh off a breakout 2025, O&J Malaysia is turning to the J5 to sustain its rapid growth into the new year.
12-01-2026
Rapid KL Set To Restructure Bus Routes Starting Jan 16
Rapid KL will restructure selected bus and MRT feeder routes starting Jan 16, shifting low-demand services to on-demand vans.
12-01-2026
PLUS Rolls Out ANPR Toll Pilot on Kedah–Penang Stretch
PLUS Malaysia’s ANPR toll pilot delivers lane freedom while laying the groundwork for Multi Lane Free Flow tolling.
12-01-2026
Show More
trending_flat