PUTRAJAYA, July 23, 2025 – The MADANI Government, led by Prime Minister and Finance Minister Dato’ Seri Anwar Ibrahim, has reaffirmed its commitment to restructuring national subsidies to ensure ordinary Malaysians continue to benefit while addressing leakages to ineligible groups.
Effective July 2025, electricity tariff restructuring has been implemented, resulting in 85% of domestic users enjoying up to a 14% reduction in their electricity bills for the same usage compared to the first half of 2025. This comes despite misleading claims by certain parties alleging tariff hikes. The government is also moving forward with plans to target RON95 petrol subsidies, with further details to be announced by the end of September 2025.
Prime Minister Anwar assured that, similar to the electricity subsidy approach, ordinary citizens will not be adversely affected. In a significant move, he announced that the price of RON95 petrol will be reduced to RM1.99 per litre, benefiting approximately 18 million car drivers and motorcyclists, including youths as young as 16 and gig workers. However, ineligible groups, such as foreign nationals, will be required to pay the unsubsidised market price.
This targeted approach aligns with the government’s efforts to optimise national resources for the benefit of citizens and reduce subsidy wastage. In 2023 and 2024, RON95 subsidies alone cost nearly RM20 billion annually.
Despite a decline in global oil prices this year, the unsubsidised price of RON95 remains around RM2.50 per litre, significantly higher than the subsidised rate for Malaysians.