Anwar Announces RON95 Price Drop to S$0.60 (RM1.99) per Litre

Targeted Fuel Subsidy to Benefit Malaysians

Malaysia will soon introduce a new fuel subsidy mechanism that brings the price of RON95 petrol down to RM1.99 per litre, which is around S$0.60.

This was announced by Prime Minister Datuk Seri Anwar Ibrahim during a televised address on Wednesday, 23 July 2025.

The new price will apply only to Malaysians under a targeted subsidy programme, aimed at ensuring fuel aid reaches those who truly need it, such as:

Young drivers (as young as 16),
motorists,
and gig workers like delivery riders and e-hailing drivers.

Foreigners will not be eligible for the subsidised rate and must continue to pay the market price.

Why the Change?

Currently, the market price of RON95, without subsidies, is about RM2.50 (approx. SS0.75) per litre, even with recent dips in global oil prices.

The government wants to cut down on subsidy wastage, which in 2023 and 2024 cost nearly RM20 billion (approx. S$6.05 billion) annually, according to NST.

Full details of how this new mechanism will be rolled out are expected by the end of September 2025.

RM100 Credit for All Malaysians Aged 18 and Above

Alongside the fuel subsidy announcement, the Prime Minister also introduced a one-off RM100 (approx. S$30) digital credit for all Malaysian citizens aged 18 and above.

This is part of the new “Penghargaan Rakyat” (People’s Appreciation) initiative.

The credit will be redeemable via MyKad (Identity Card) and can be used at over 4,100 retail outlets across the country.

The credit will be available from 31 August to 31 December 2025.

Public Holiday on 15 September

To mark Malaysia Day (16 September), the government has declared Monday, 15 September 2025, a special public holiday.

Anwar said the long weekend is a gesture of appreciation to Malaysians, giving them time to relax, reconnect with loved ones, and celebrate national unity.

Toll Hikes Postponed on 10 Highways

Malaysians travelling during the holiday season will also benefit from no toll hikes this year.

The government has deferred toll rate increases originally scheduled for 2025 on 10 major highways, including the Senai-Desaru Expressway (SDE), KL-Putrajaya Expressway (MEX) and East Coast Expressway 2 (LPT2).

Electricity Bills Cut for 85% of Malaysians

Addressing concerns over rising electricity costs, the Prime Minister clarified that 85% of domestic users saw a drop in their bills in July 2025 after the new tariff structure was introduced.

Some households reportedly saved up to 14% on their monthly bills.

What Comes Next?

Further details on how the fuel subsidy system will be applied, especially how eligibility will be determined, will be shared by the end of September.

From cheaper fuel and toll savings to digital cash aid and utility discounts, the initiatives announced reflect the government’s aim to ease cost-of-living pressures for Malaysians while managing national spending responsibly.