KUALA LUMPUR (July 23): Prime Minister Datuk Seri Anwar Ibrahim announced on Wednesday that the retail price of RON95 will be lowered to RM1.99 per litre for eligible motorists, from RM2.05 per litre currently, under the government’s plan to retarget subsidies on petrol.
Anwar remained mum on the plan’s details and implementation timeline, however, merely stating that more “detailed announcements” are to come by end-September this year.
While Malaysia withdrew blanket subsidies on diesel last year, it has had little success in rationalising the politically sensitive subsidies on RON95, the most widely used petrol grade in the country.
Though the subsidies help shield consumers from spikes in prices, rating agencies and economists have panned the spending as wasteful at a time when the government is trying to fix its finances from long-running budget deficits.
Nonetheless, Anwar noted on Wednesday that the lower RON95 retail price is expected to benefit 18 million motorists, and the government guarantees that “ordinary citizens” will not be affected by the petrol subsidy retargeting.
“At the same time, those not eligible, such as foreign nationals, will need to pay the unsubsidised market price," Anwar said during the broadcast.
“This targeted approach is aligned with the government’s effort to optimise national resources for the benefit of the people and reduce subsidy wastage," he added.