RON95 Subsidy Now Under MOF’s Purview - Rafizi

The responsibility for implementing targeted RON95 fuel subsidies has been officially transferred from the Ministry of Economy to the Ministry of Finance, signaling potential progress after extensive Cabinet discussions.

Minister of Economy Datuk Seri Rafizi Ramli confirmed that the matter is no longer under the purview of his ministry.

“The decision regarding the targeted RON95 subsidy has been completely transferred to the Ministry of Finance. That was the decision of the Cabinet. 

“From the Ministry of Economy’s side, we have brought this matter to the Cabinet four times, and the current position is to await action from the Ministry of Finance. They will be managing the entire RON95 subsidy process from now on. We must wait for their official announcement,” he said.

The government aims to improve public finance management by centralizing subsidy distribution under the Ministry of Finance. This includes a two-phase implementation of targeted fuel subsidies.

Phase one will focus on operational execution at petrol stations, while phase two will identify eligible beneficiaries within the B85 income group, encompassing the bottom 85% of earners.

“The back-end processes,” Rafizi said, “will still be handled by his ministry. This has been brought to the Cabinet for approval.”
In Budget 2025, PM Anwar Ibrahim announced targeted RON95 fuel subsidies by mid-2025, projecting RM8 billion savings for public welfare reinvestment. The government anticipates minimal impact on 85% of Malaysians, as the system aims to aid the vulnerable and reduce waste.