KUALA LUMPUR (May 19): Economy Minister Datuk Seri Mohd Rafizi Ramli said on Monday that the decision regarding the rationalisation of RON95 fuel subsidies now rests fully with the Ministry of Finance (MOF), after several rounds of deliberation at the Cabinet level.

"The decision regarding the targeted RON95 subsidy has been completely transferred to the MOF. That was the decision of the Cabinet," Rafizi told reporters at the Johor-Singapore Special Economic Zone Partners Dialogue event on Monday. 

"We have gone to the Cabinet four times and the current position is to wait for the MOF, because the MOF is going to manage the whole process of RON95 after this, and I think we will wait for the announcement from them," he added.

Pressed further on the timing of the announcement, Rafizi declined to elaborate, saying, "I think as I said, it’s best to get more details from the MOF." 

The transfer of the implementation of the RON95 subsidy — impacting tens of billions of ringgit in government funds — from the Ministry of Economy to the MOF comes ahead of the expected roll-out as early as the middle of this year, according to earlier statements by Prime Minister Datuk Seri Anwar Ibrahim, who is also the minister of finance. 

Formulation of energy policies related to oil and gas is one of the roles of the Ministry of Economy, alongside with formulation of socio-economic development plans, advising the government on socio-economic affairs and monitoring of national initiatives' progress, the ministry's website showed. 

Meanwhile, the MOF's role includes formulation and implementation of fiscal policies in ensuring sustainable economic growth, and managing the appropriation of financial resources, according to its official website.

The government had already restructured electricity and diesel subsidies in phases since 2023 to better reflect market pricing and reduce fiscal leakage.

The implementation of targeted subsidies is also expected to be implemented in phases, according to analysts' reports.

The first phase would be in a front-end phase involving operational execution at petrol stations, and a back-end phase involving eligibility determination for recipients in the bottom 85% income group.

The highly anticipated rationalisation of RON95 fuel subsidies is part of the government’s broader push for targeted subsidy reforms under the Madani Economy framework.