Malaysia to reduce subsidized RON95 fuel price to $0.47 per liter to ease cost of living

The price of subsidised RON95 fuel will be reduced from RM2.05 per liter, Prime Minister Anwar Ibrahim said at a regular briefing at the Prime Minister's Department on Monday.

A man walks into a Petronas gas station in Kuala Lumpur, Malaysia. Photo by SOPA Images via Reuters

The new subsidised fuel price will only be available for Malaysians with a valid driver's license, with non-citizens expected to pay RM2.60 per liter at the pump, Anwar said.

The government will also cap subsidised fuel purchases at 300 liters per month per person, with exceptions to be made for ride-hailing drivers, Anwar said.

Any savings from the subsidy changes will be channeled towards improving public infrastructure and aid for the needy, he said.

The changes were announced in July, although they did not go as far as initial plans to also remove RON95 subsidies for the wealthy.

Anwar's administration has taken several measures to boost revenue and productivity, including a minimum wage hike, increased electricity tariffs on heavy power users and an expanded sales and services tax.