KUALA LUMPUR (June 25): The government is examining the need to expand targeted subsidies to include RON95 petrol, according to Minister of Economy Rafizi Ramli.

In a written parliamentary reply to Radzi Jidin (PN-Putrajaya), Rafizi said that the government is considering subsidy rationalisation for RON95. However, its immediate focus remains on implementing the targeted diesel subsidy which began earlier this month.

"Currently, the government is prioritising stabilisation of the targeted diesel subsidy to achieve objectives such as enhancing the country's fiscal sustainability and reducing leakages in subsidy distribution," Rafizi said.

He added that any future adjustment to the RON95 petrol subsidy will include measures to adequately support affected groups.

On May 21, Prime Minister Datuk Seri Anwar Ibrahim announced that the Cabinet had agreed to implement targeted diesel subsidy in Peninsular Malaysia, resulting in the fuel price rising from RM2.15 per litre to RM3.35 per litre.

Rafizi explained that fuel subsidies accounted for 12.3% of the government's total operating expenditure in 2023, prompting the need for subsidy reform.

Through the diesel subsidy rationalisation, Rafizi expects the government to achieve annual savings of RM4 billion, which will be used to improve the quality of life for the wider public through the provision of quality public infrastructure and more comprehensive social protection.

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