Prime Minister Datuk Seri Anwar Ibrahim has reiterated that the price of RON95 petrol will remain fixed at RM2.05 per litre, assuring the public that there are no plans to raise the rate despite earlier discussions at the Cabinet level. Speaking at the 2025 PKR National Congress held at the Persada Johor International Convention Centre, Anwar said he strongly opposed a recent proposal to hike fuel prices and offer financial assistance as compensation.
“I was presented with a proposal to increase RON95 prices for the general public while providing aid to offset the impact,” he said. “However, I — together with the Cabinet — disagreed. We do not support such a move.”
Instead, the Prime Minister hinted that the price of RON95 could be reduced gradually, depending on market trends and global energy costs. “There is potential for the price to go down — but that will depend on time and market conditions,” he added.
Foreigners Benefiting from Billions in Subsidies
While Malaysians can breathe a sigh of relief, the Prime Minister was firm in his stance that foreign nationals in Malaysia will no longer be entitled to the same level of petrol subsidies. Anwar revealed that approximately four million foreigners are currently enjoying heavily subsidised fuel, costing the government an estimated RM3 to RM4 billion annually.
“What’s wrong with removing subsidies for foreigners?” he asked rhetorically. “They are not entitled to the same benefits as Malaysian citizens. These subsidies were meant for our rakyat.”
To address this, Anwar said the government is exploring a verification system that may soon require individuals to show national identity cards (ICs) when purchasing RON95. “If you’re buying subsidised fuel, you may need to present proof of citizenship — or use another method, which will be outlined later,” he said.
Towards Targeted Subsidies: Budget 2025 in Focus
The policy shift aligns with measures outlined in Budget 2025, where Anwar had already announced plans to implement targeted fuel subsidies by mid-2025. These reforms aim to rationalise government spending and direct subsidies to those who truly need them.
The Prime Minister, who also holds the Finance portfolio, noted that 40 per cent of current RON95 subsidies are being misused — enjoyed by foreigners and Malaysia’s wealthiest top 20 per cent (T20) income group. By eliminating this leakage, the government could potentially save RM8 billion annually, which Anwar said would be channelled back into public services.
“These funds can be used to improve healthcare, education, and public transport systems across the country — sectors that benefit the broader population,” he explained. “This isn’t about punishment; it’s about justice and fairness.”
Ultra-Rich Shouldn’t Receive Petrol Subsidies
In one of his most pointed remarks, Anwar criticised the continued entitlement mentality of Malaysia’s wealthiest. He expressed disbelief that the top five per cent of income earners, including those who own Rolls-Royces and luxury car fleets, still expect to benefit from government fuel subsidies.
“No country in the world gives petrol subsidies to billionaires or Rolls-Royce owners,” he said. “Yet here, the wealthiest demand that we continue funding their consumption of subsidised fuel. That is unacceptable.”
Anwar emphasised that the government’s approach is focused on ensuring that the majority of Malaysians — particularly the low- and middle-income groups — are protected, and not burdened by excessive reforms that only benefit the privileged few.
LNG and Gas Subsidy Reforms Also Underway
Beyond petrol, Anwar confirmed that the government is undertaking a comprehensive review of gas and liquefied natural gas (LNG) subsidies, which have come under scrutiny in recent months. While reforms may be necessary to ensure sustainability, Anwar gave his assurance that small businesses and lower-income groups would not be unfairly affected.
“We understand the concerns of small companies, particularly SMEs, which could be impacted by rising gas costs. That’s why we are taking a measured, careful approach,” he said.
E-Invoice System to Be Reviewed
The Prime Minister also responded to growing public concerns surrounding the e-Invoice system, which aims to tighten tax compliance and reduce leakages in national revenue. While reaffirming the system’s importance, Anwar acknowledged calls to re-evaluate its implementation.
“We will study the e-Invoice. It is crucial for national revenue and transparency, but we must ensure that its roll-out does not cause undue burden or confusion,” he said.
The system, which forms part of the Inland Revenue Board's digital transformation strategy, has received mixed reactions from the business community, with some SMEs urging more clarity and support during the transition period.
Poor Communication on Electricity Subsidies
In a moment of internal critique, Anwar also admitted that PKR had failed to communicate effectively about the government’s ongoing electricity subsidy reforms. Despite the fact that 85 per cent of Malaysians remain unaffected by the changes, public confusion and backlash have continued.
“Our communication has been weak — we have not explained our policies clearly enough to the people,” he said. “We must improve the way we convey these reforms to avoid unnecessary fear or misinformation.”
A Broader Push Towards Fiscal Sustainability
Overall, Anwar’s remarks mark a significant step in Malaysia’s journey towards targeted subsidy reform, aimed at creating a more equitable, efficient, and fiscally responsible welfare system. While he reaffirmed his administration’s commitment to protecting the majority, he also made it clear that wasteful subsidies for the ultra-rich and foreign nationals must end.
“As a government, we must act in the interest of the many — not the privileged few,” he concluded.
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*Sources: Visual and Reference Credits to Social Media & various cross-references for context.
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