RON95 fuel subsidy drops to RM1.8bil in Q4 2025

2026-03-05 - 15:34

The finance ministry said savings were achieved due to the reduction of subsidy leakages, including purchases of subsidised RON95 fuel by non-citizens and smuggling activities. KUALA LUMPUR: RON95 fuel subsidies for the fourth quarter (Q4) of 2024 amounted to RM3 billion, before declining to RM1.8 billion in Q4 2025, according to the finance ministry. The ministry said this resulted in savings of around RM1.2 billion following the implementation of targeted subsidies through the BUDI95 initiative, as well as the decline in oil market prices. “These savings were achieved due to the reduction of subsidy leakages, including purchases by non-citizens and smuggling activities. “The government appreciates the concern shown by members of the public who have provided information regarding attempts to misuse the RON95 subsidy, which also helps ensure that the subsidy is enjoyed by eligible Malaysian citizens,” the ministry said in a written reply in the Dewan Negara. The ministry was responding to a question from Senator Low Kian Chuan regarding the total annual savings achieved by the government from the rationalisation of RON95 fuel subsidies since its implementation, as well as projected savings for 2026. Meanwhile, in response to a question from Senator Abdul Nasir Idris regarding the government’s current evaluation of MyKad usage at petrol stations and its implications for improving the targeting of fuel subsidies, the ministry said the system had been operating stably and smoothly.