Cheap Petrol For T20? Its Days Are Numbered. PM Anwar Drops New Update

The days of universal RM1.99 petrol are officially numbered. During a high-energy dialogue with university students on Sunday, Prime Minister Datuk Seri Anwar Ibrahim confirmed that the government is in the final stages of refining the mechanism for targeted RON95 fuel subsidies.

With nonsubsidised RON95 currently hovering around RM4.02 per litre, the stakes have never been higher for Malaysian households. If you’ve been wondering where the line will be drawn, here is the breakdown of the latest developments.

1. T20, T15, T10 or T5? The "Upper-Middle" Debate

While the move to rationalise subsidies has been agreed upon "in principle," the biggest headache remains the classification. The PM confirmed that the National Economic Action Council (MTEN) is debating whether the cuts should apply to the T20, T15, T10 or even the Top 5% of earners as the government does not want it to impact the upper-middle class.

2. The "Triple-Threat" Crisis Management

The proposal isn't just about saving money; it’s a response to a global energy shock. A Crisis Management Task Force, chaired by Tan Sri Mohd Hassan Marican, is reviewing the situation.

Why now? Ongoing conflict in the Middle East and disruptions in the Strait of Hormuz have sent the government’s fuel subsidy bill skyrocketing, estimated at nearly RM7 billion for April 2026 alone.

3. The Budi95 Mechanism Is Changing

For those who do qualify for the subsidy (B40 and M40), the buffer has already seen a shift. The monthly subsidised quota, originally proposed at 300 litres, has been adjusted to 200 litres as part of a temporary measure to manage demand and supply stability.

Economists estimate that by simply excluding the T20 group, the government could save up to RM1.5 billion every single month.

4. The Great EV Pivot: Is It Time To Plug In? 

With the potential end of cheap petrol for top earners, the math behind car ownership is changing overnight. If you’re in the T20 or T15 bracket, paying the full market price for RON95 could add hundreds to your monthly expenses, making Electric Vehicles (EVs) look more attractive than ever.

For a household earning RM15k+, the decision to buy a premium EV isn't just about the environment anymore; it’s about "future-proofing" your wallet against subsidy rationalization.

If the "market price" for petrol stays high, the ROI (Return on Investment) for an EV’s higher purchase price could be reached much faster than before.

Read: No More Cheap Fuel For T20? Economists Suggest Cutting Them From BUDI95 To Save RM1.5B