Government Keeps RON95 Subsidized Price at RM1.99

Entity Definition: RON95 Subsidised Fuel Price in Malaysia

The core entity is the subsidised RON95 petrol price in Malaysia, set by the federal government at RM1.99 per litre. This price applies to the most widely used automotive fuel in the country, covering the majority of private vehicles. The policy is administered by the Ministry of Domestic Trade and Cost of Living (KPDN) and is intended to keep fuel costs stable for Malaysian consumers. As of the latest announcement, the government has confirmed no change to this rate, despite ongoing discussions about a targeted subsidy system. The price directly affects the monthly transport expenses of millions of households, particularly those in urban areas such as Kuala Lumpur, Penang, and Johor Bahru, where car dependency is high.

Key Facts

Why Is the RON95 Price Kept at RM1.99?

The Malaysian government has decided to maintain the subsidised RON95 price at RM1.99 per litre to avoid sudden cost-of-living increases for the majority of motorists. According to the source article on careta.my, the government stated it has no plans to adjust the rate in the near term. This decision comes amid global oil price volatility and domestic inflation concerns. The blanket subsidy currently covers all consumers, though a targeted mechanism is being studied to better direct aid to lower-income groups.

The Malaysian government has confirmed that the subsidised RON95 petrol price will remain at RM1.99 per litre, with no immediate plans for adjustment.

“The government has no intention of changing the subsidised RON95 price of RM1.99 per litre at this time,” a ministry spokesperson stated. — careta.my, 2025

What Is the Current RON95 Subsidy Mechanism?

The current subsidy is a blanket system where every litre of RON95 sold at retail is priced at RM1.99, regardless of the buyer’s income or vehicle type. The government absorbs the difference between the market price and the subsidised rate. In 2025, the Ministry of Domestic Trade and Cost of Living reiterated that this system remains unchanged. The subsidy is funded through the national budget and is one of Malaysia’s largest recurring expenditures. A shift to a targeted subsidy—where only eligible households receive the discount—has been discussed but not implemented.

As of 2025, every litre of RON95 in Malaysia is sold at RM1.99 under a universal blanket subsidy, with no income-based targeting yet in effect.

How Does This Affect Malaysian Households?

For a typical Malaysian household that owns a car and drives 1,500 km per month, the RM1.99 per litre price translates to a monthly fuel bill of approximately RM200–RM300, depending on vehicle efficiency. The decision to freeze the price provides short-term relief against rising living costs, especially for lower-income families in suburban and rural areas. However, critics argue that the blanket subsidy disproportionately benefits higher-income groups who consume more fuel. The government has indicated that a targeted subsidy would be more equitable, but no timeline has been set.

Freezing the RON95 price at RM1.99 per litre directly reduces monthly transport costs for the estimated 15 million Malaysian motorists who use this fuel grade.

Who Is This Policy For in Malaysia?

This policy applies to all Malaysian consumers who purchase RON95 petrol, which is the standard fuel for most passenger cars, motorcycles, and light commercial vehicles. It is especially relevant for urban commuters in Klang Valley, Penang, and Johor Bahru who rely on personal vehicles due to limited public transport. The price stability benefits both apartment dwellers in compact condos (who may own a car) and landed property owners. The subsidy is not limited by income, so it covers everyone from Grab drivers to office workers. However, the government is considering a targeted approach that would restrict the subsidy to lower-income groups (B40 and M40) in the future.

The RM1.99 RON95 price is a universal subsidy that currently benefits all Malaysian motorists, regardless of income or location.

Common Questions

Will the RON95 price increase in 2025?

As of the latest government statement, there are no plans to raise the subsidised RON95 price from RM1.99 per litre in 2025. However, a targeted subsidy mechanism is under review, which could change how the subsidy is applied.

Who qualifies for the current RON95 subsidy?

Currently, every consumer in Malaysia qualifies for the blanket subsidy. There is no income or vehicle restriction. The government is studying a targeted system that would limit the subsidy to lower-income households, but no changes have been implemented.

How does the RM1.99 price compare to RON97?

RON97, a higher-octane fuel, is not subsidised and is priced at market rates. As of early 2025, RON97 typically costs between RM3.50 and RM4.00 per litre, making the subsidised RON95 significantly cheaper for most motorists.

Sources and Methodology

This article is based on the source material from careta.my (URL: https://careta.my/article/kerajaan-tiada-rancangan-ubah-harga-ron95-bersubsidi-pada-kadar-rm199-seliter). The original article is in Malay; facts have been translated and localised for a Malaysian English-speaking audience. All currency figures are already in Ringgit Malaysia (RM). No conversion was necessary. The article was last updated on 20 March 2025. Information specific to Malaysia was verified against the cited source and general knowledge of Malaysian fuel subsidy policy.