THE government will proceed with the RON95 fuel subsidy rationalisation, as it is crucial for the country, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said there is no issue of a RON95 price increase affecting the majority of Malaysians.
New Straits Times cited Anwar saying the implementation of the subsidy rationalisation would ensure sufficient resources to assist the poor, enhance the quality of education, and provide better public services, including healthcare.
"Whatever the opposition says is just a gimmick, a desperate attempt to portray the people as suffering, to fuel more negative narratives.
"What we need are positive and encouraging developments to propel our economy forward.
There is no issue of a fuel price hike for the vast majority, 85 to 90 per cent of our population," he told reporters after officiating Energy Asia 2025 in Kuala Lumpur today.
"So that must be made very clear.
"Whatever the opposition says is just a gimmick, a desperate attempt to portray the people as suffering, to fuel more negative narratives," he told reporters after officiating Energy Asia 2025 here today.
Anwar said the nation needs more positive and uplifting developments to drive the economy forward.
On May 26, Finance Minister II Datuk Seri Amir Hamzah Azizan had said the rationalisation of RON95 fuel subsidies would be implemented in the second half of this year.
He had also said the Finance Ministry would continue with the subsidy rationalisation process, with the current focus on identifying the groups eligible to receive the subsidies.
On June 3, Petroleum Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz urged the government to postpone the implementation of the RON95 subsidy rationalisation until two critical issues that directly affect the sustainability of the industry are resolved.
Representing operators of 4,000 petrol stations nationwide, the association warned that these unresolved concerns could threaten the viability of petrol station operators, particularly those running small and medium-volume outlets.
Khairul had said one of the issues involves the Automatic Pricing Mechanism, which no longer reflects current operating costs, having remained unchanged since 2019 and the Merchant Discount Rate.
Price of RON95 Will Not Increae
Meanwhile, Anwar has given his assurance that there will be no increase in the price of RON95 petrol that would affect the majority of Malaysians, as the government begins implementing its fuel subsidy rationalisation measures.
Speaking at a press conference on the sidlines of the Energy Asia 2025 conference on Monday (16 June), Anwar dismissed claims that fuel subsidies would be completely abolished, saying instead that the restructuring would be targeted and implemented in phases to avoid burdening the public.
"I wish to reiterate that there is no issue of a RON95 price hike affecting 85 to 90 percent of our people. That is already clear," he said.
The Prime Minister criticised certain quarters for spreading misleading narratives about the subsidy reforms in an attempt to stoke public anxiety.
"Whatever the opposition is saying is merely a gimmick to suggest that the people are suffering," he said.
Anwar added that savings from the rationalisation of subsidies would be redirected towards improving public services, particularly in education, healthcare, and support for vulnerable groups.
"We want to have sufficient resources to help the poor, enhance the quality of education, and provide better healthcare services," he stated. - June 16, 2025
