Malaysia fuel subsidy change saves USD 950 million annually

Malaysia’s government has revised its fuel subsidy plan, now estimating savings of around 4 billion ringgit, or approximately 950 million US dollars, annually. 

The move affects RON95 petrol, a widely used fuel in the country, and marks a significant adjustment from the original target of 8 billion ringgit. The revision comes after public concerns over rising living costs.

Prime Minister Anwar Ibrahim confirmed that citizens will still benefit from subsidised fuel, while foreigners will face higher prices at the pump. Second Finance Minister Amir Hamzah Azizan noted that the savings, calculated with crude oil around 75 dollars per barrel, will be redirected to public assistance programs and cash aid for the needy.

This change reflects Malaysia’s careful approach to subsidy management, balancing fiscal responsibility with citizens’ needs. By targeting fuel subsidies more precisely, the government aims to maintain support for lower-income households while reducing unnecessary spending. The policy could influence petrol prices and car ownership costs, making it important for motorists to stay informed.

Motorists can make the most of these developments by using Motorist.my or downloading the Motorist app. From selling cars and getting free car valuations to exploring loan options, Motorist offers practical tools for every driver in Malaysia.

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