Prime Minister Announces Fuel Subsidy Rationalization

Prime Minister Anwar Ibrahim revealed a significant reduction in the price of RON95 fuel to 47 cents per liter, aimed at alleviating the cost of living for Malaysians. This move, part of a broader subsidy rationalization effort, is set to benefit approximately 18 million motorists, including young drivers and gig economy workers.

Exclusive Benefits for Malaysians

Anwar clarified that the subsidy would exclusively benefit Malaysians, with foreigners required to pay market rates. This decision underscores the government's commitment to supporting its citizens while ensuring fiscal sustainability.

Current and Future Fuel Pricing

Currently, Malaysians pay a subsidized rate of RM2.05 per liter for RON95, a significant discount from the unsubsidized market rate of around RM2.50. The Prime Minister highlighted the substantial annual subsidy cost of nearly RM20 billion for RON95 alone.

Comprehensive Relief Package

Alongside the fuel price cut, the government plans to distribute a one-off cash handout of RM100 starting August 31. This package aims to mitigate the impact of the recent sales and service tax expansion, providing immediate financial relief to citizens.

Addressing Inflation Concerns

Anwar addressed potential inflation concerns, assuring that the subsidy plan is designed to protect ordinary Malaysians without benefiting the wealthy. This targeted approach mirrors the government's strategy with electricity subsidies, ensuring that support reaches those in genuine need.