Anwar: No RON95 Price Hike, But Subsidies for Foreigners Will End

The government has made it clear: the price of RON95 petrol will not go up for Malaysians.

This assurance came just days after Economy Minister Rafizi Ramli announced that the task of managing targeted RON95 fuel subsidies has been officially handed over to the Ministry of Finance which is also under the purview of the Prime Minister Datuk Seri Anwar Ibrahim.

Speaking at the recent PKR National Congress in Johor Bahru, Anwar said he and the Cabinet had rejected a proposal to raise petrol prices and give cash aid in return.

“There was an initial proposal to raise fuel prices and then give out aid. I and the Cabinet disagreed with that proposal - we do not agree with raising fuel prices,” he said.

Anwar explained that any future price changes would be based on market conditions and would be introduced very carefully, if at all.

But while Malaysians won’t be paying more for petrol, Anwar did highlight a major problem: a big portion of RON95 subsidies is going to people who shouldn’t be getting it - such as foreigners and the ultra-rich.

He revealed that foreigners in Malaysia are enjoying RM3 to RM4 billion worth of subsidised petrol every year. That’s a lot of public money meant to help regular Malaysians.

To fix this, the government is looking at ways to make sure only Malaysians benefit from the subsidies. One idea being considered is to require a MyKad ID to buy RON95 petrol.

Anwar also reminded the public that this is part of a bigger plan. Back in Oct, during the tabling of Budget 2025, he said the government would roll out a targeted subsidy system by mid-2025 which could save the country up to RM8 billion.

He had promised that 85% of Malaysians would not be affected by these changes, and that the money saved would be used to improve public services like education, healthcare, and transport.

At the same time, the Prime Minister admitted the government hadn’t done a good job explaining its subsidy reforms, especially when it came to electricity and gas. He said there had been a lot of confusion among the public, and pledged better communication going forward.

Now given all the above, an important question does arise: what happened to Pangkalan Data Utama (PADU)?

PADU was built at a cost of RM85 million to help the government target subsidies more accurately. It was supposed to be a central database to determine who qualifies for fuel, electricity, and other types of government aid.

For now, however, Malaysians can take comfort in knowing that RON95 prices are not going up.