In a significant announcement on Monday, September 22, 2025, Malaysian Prime Minister Anwar Ibrahim confirmed that the government will reduce the price of RON95 fuel for its citizens. This move is part of a much-anticipated initiative to recalibrate fuel subsidies, offering welcome relief from the rising cost of living.
Effective September 30th, the subsidized RON95 fuel will see its price drop from 2.05 ringgit to 1.99 ringgit (approximately $0.47) per litre. Prime Minister Anwar elaborated on these details during a recent briefing held at his department.
This reduced fuel price will exclusively benefit Malaysian citizens holding a valid driver’s license. Non-citizens, however, will be required to pay 2.60 ringgit per litre. Furthermore, the government plans to implement a monthly cap of 300 litres on subsidized fuel purchases per person, though special provisions will be made for ride-hailing drivers.
The savings generated from these substantial subsidy adjustments are earmarked for crucial investments in public infrastructure and direct aid programs for underprivileged communities.
While these reforms were initially revealed in July, the current plan does not extend to the earlier proposal of entirely removing RON95 subsidies for affluent individuals.
Prime Minister Anwar’s administration has been actively pursuing various strategies to enhance national revenue and productivity. These measures include implementing a minimum wage increase, raising electricity tariffs for major consumers, and broadening the scope of the sales and services tax.