The Malaysian government has unveiled two major initiatives to support the public — a targeted fuel subsidy for RON 95 petrol and a halt on toll rate increases for selected expressways.
In a national address, Prime Minister Datuk Seri Anwar Ibrahim confirmed that the government’s RON 95 subsidy rationalisation plan remains on schedule. Malaysians can expect more details by end of September 2025. A key highlight is that, despite the new targeted model, the RON 95 petrol price will be reduced to RM1.99 per litre, a move that will benefit millions of private vehicle users, particularly young drivers and gig economy workers.
Anwar stated that the new system aims to ensure subsidies go to those who need them, preventing excessive public spending. Over the past two years, fuel subsidies alone cost nearly RM20 billion annually, even as global oil prices shifted. Under the new scheme, foreigners and high-income individuals will no longer be eligible for subsidised rates, while Malaysians will likely use MyKad for verification.
Although the reduction from RM2.05 to RM1.99 per litre may appear small, it is a positive step toward a more efficient and inclusive fuel subsidy model.
Meanwhile, the government is also helping Malaysians save on travel costs by freezing toll hikes for 10 major highways. This decision overrides contractual rate adjustments expected this year. To maintain the current rates, the government will allocate over RM500 million in compensation to toll operators.
Among the highways included in this initiative are:
- Senai-Desaru Expressway (SDE)
- East Coast Expressway Phase 2 (LPT2)
- South Klang Valley Expressway (SKVE)
- Butterworth Outer Ring Road (LLB)
- KL-Putrajaya Expressway (MEX)
These moves demonstrate the government’s continued efforts to reduce financial pressure on households, while making smarter use of national resources. The fuel subsidy update and toll rate freeze reflect the spirit of the Madani government’s focus on people-first policies, especially in times of economic recovery.
