Govt Will Assess Economic Factors For Targeted RON95 Subsidy

The government would consider the current economic situation when choosing whether to implement the RON95 targeted subsidy, said Deputy Economy Minister Datuk Hanifah Hajar Taib.

According to the minister, the targeted subsidy's implementation requires a thorough evaluation at the Cabinet level, including feedback from the relevant ministries, given that it is a significant decision for the country.

“We need to look at the economic conditions, and any proposals will first be presented to the Cabinet,” he told reporters after the WE2025: Future in Motion pre-launch event here on Tuesday.


Recently, lawmakers have called on the government to postpone its planned RON95 subsidy rationalization and other fiscal adjustments, such as increased energy prices given the US tariffs on Malaysian imports.
Budget 2025 announced the elimination of RON95 fuel subsidies for the top 15% of income earners starting in mid-2025, a significant move following the mid-2024 float of diesel prices.

Finance Minister II Datuk Seri Amir Hamzah Azizan stated that the government is still refining the implementation mechanism for RON95 subsidies, potentially using a two-tiered pricing system linked to MyKad.