Targeted RON95 Subsidy Rollout Delayed - Fahmi Fadzil

The government is taking a more careful approach to the planned RON95 fuel subsidy rationalisation, choosing to delay its rollout to avoid placing extra pressure on the public.

Communications Minister and government spokesperson Fahmi Fadzil said Prime Minister Datuk Seri Anwar Ibrahim wants every policy under the Madani Government to ease, not worsen, the lives of Malaysians, especially when it comes to essentials like fuel.

“The Prime Minister does not want any policy, even those previously discussed, to move forward without fully weighing the impact,” Fahmi told Parliament.

Originally set for the second half of 2025, the RON95 subsidy shift is now undergoing further review to ensure it won’t lead to inflation or implementation issues.

The move mirrors the government’s careful handling of the SST expansion and targeted diesel subsidy earlier this year. Finance Minister II Datuk Seri Amir Hamzah Azizan had said the change could still happen in 2025, provided those eligible are accurately identified.

Fahmi stated this is part of a broader fiscal reform to prevent subsidy leakages and ensure a fairer system, where high-income earners and businesses contribute their share.

“The government remains committed to protecting the people, that means doing it right, not rushing it,” he added.