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Home News

Budget 2025: RON95 Subsidy Cuts To Be Implemented Mid-2025

The cuts is expected to save the government up to RM8 billion.

by John Law
October 18, 2024
Budget-2025-RON95-Subsidy-1

Image: RTM

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In his Budget 2025 tabling, Prime Minister Datuk Seri Anwar Ibrahim announced that his government will begin subsidy rationalisation for RON95 petrol will begin in mid-2025, although no exact date was provided. The Prime Minister says that this was similar to targetted subsidies carried out for diesel.

At present, RON95 is capped at RM2.05 per litre, while the unsubsidised amount for this petrol is set at RM2.76 per litre, at the time of writing. With the targetted subsidies cut, the government hopes to save up to RM8 billion.

Budget-2025-RON95-Anwar-Ibrahim-Prime-Minister-1
(Image source: RTM.)

In addition, the Prime Minister also said that the expected amount it would save was an amount that was being “enjoyed by foreigners” and the top 15% (T15) in our country, or super-rich customers. That money, he says, is money that could be better used in other sectors, chief among which being health and public transportation.

Other issues tabled during the session include a 2% dividend tax on income exceeding RM100,00 for individual shareholders, expected to be implemented next year.

Filed Under budget 2025ron95
Updated 6:42 pm, Fri, 18 October 24
https://lowy.at/77k8q
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