PRIME MINISTER Datuk Seri Anwar Ibrahim today clarified that the subsidised retail price of RM1.99 per litre for RON95 petrol applies strictly to Malaysian citizens, while foreigners, including tourists, will pay the prevailing market rate of around RM2.50 to RM2.60 per litre.
He made the announcement during the launch of the National Month and Fly the Jalur Gemilang 2025 Campaign at Dataran Tanjung Emas, where he underscored the principle that subsidies should serve those who contribute to the nation’s economy and tax system.
“This is not a form of discrimination, but the policy of a sovereign nation committed to protecting the welfare of its people,” Anwar said.
Also in attendance were Communications Minister Datuk Fahmi Fadzil, Johor Menteri Besar Datuk Onn Hafiz Ghazi, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, and Director-General of the Information Department Julina Johan.
Anwar noted that the targeted subsidy reform is intended to curb unnecessary public expenditure on fuel subsidies that have historically been enjoyed by foreigners—many of whom do not contribute to Malaysia’s fiscal pool.
“Foreigners do not pay taxes like Malaysians. In which country do non-citizens receive subsidies equal to those given to locals? My primary responsibility is to look after the welfare of Malaysians,” he said.
He also responded to criticism from a Johor-based opposition leader who had questioned the rationale behind excluding foreigners from the subsidised price scheme.
“An opposition leader asked why foreigners have to pay more. I don’t understand. I am the Prime Minister of Malaysia,” he said, adding that the move aligns with international norms.
Anwar further pointed out that Malaysia continues to offer some of the lowest fuel prices in the region despite fiscal challenges, citing significantly higher rates in neighbouring countries.
“If you don’t believe me, just look at the fuel prices in Singapore, Thailand and Indonesia. We are still able to provide (RON95) at RM1.99 per litre. That is my responsibility,” he said.
He added that the savings from the fuel subsidy rationalisation will be redirected to support welfare initiatives, rural development, and gradual wage hikes, particularly for lower-income earners and public sector workers.
The fuel subsidy measure is part of a broader effort by the MADANI Government to ensure public funds are used efficiently and equitably, with emphasis on protecting the rakyat and building a sustainable economic future. - July 27, 2025
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