Latest news with #petrolsubsidy
South China Morning Post
05-07-2025
- Business
- South China Morning Post
Anwar's petrol subsidy cuts test patience of Malaysians ‘addicted' to cheap fuel
Expertly switching between woks as he whips up appam, the coconut and rice batter pancakes that draw morning commuters to his roadside stall in a Kuala Lumpur suburb, Raj Kumar harbours anxieties that simmer away beneath the calm: petrol subsidy cuts are looming and prices may soon rise again. At 44, Raj feels every shift in Malaysia 's rising cost of living – both in the prices he pays for ingredients and the rueful faces of his customers. 'Our suppliers raised prices after diesel subsidies were cut last year,' he told This Week in Asia. 'If they cut petrol subsidies, prices are sure to go up again.' Prime Minister Anwar Ibrahim announced in May that his government would press ahead with its plan to restructure subsidies for RON95 grade petrol in the second half of this year. The move is part of a bid to slash an unwieldy subsidy bill that soared to an all-time high of nearly 80 billion ringgit (HK$148.6 billion) in 2023, with about half spent on fuel – both petrol and diesel. Malaysian Prime Minister Anwar Ibrahim in Jakarta last month. His government is still planning to go ahead with petrol subsidy cuts in the second half of this year. Photo: AFP The government's aim is to end blanket subsidies and ensure that only the most needy receive state support – a move that is fiscally prudent but politically dangerous for Anwar with a general election due by 2028 at the latest.
Yahoo
16-05-2025
- Business
- Yahoo
Malaysia committed to petrol subsidy cuts in second half of 2025, says MOF
KUALA LUMPUR, May 16 — The government remains committed to reducing petrol subsidies in the second half of 2025 and is refining its implementation plan amid economic challenges, according to the Ministry of Finance (MOF). 'The government will continue to assess inputs and feedback in refining details of the RON95 subsidy rationalisation as it actively engages with a wide range of stakeholders,' a ministry spokesperson said in response to questions from Bloomberg News. Prime Minister Datuk Seri Anwar Ibrahim announced in October last year that the government would introduce a two-tier pricing system for RON95 petrol in mid-2025. Under the plan, the wealthiest 15 per cent would pay market rates, while others would continue to enjoy subsidised prices, potentially saving the government RM8 billion annually. 'The government remains committed to implementing the RON95 subsidy rationalisation in the second half of 2025 and will share further details in due course,' the spokesperson added was quoted as saying. In March, Anwar, who is also finance minister, assured Malaysians that the planned subsidy cut would not impact 80 to 90 per cent of the population. A recent drop in global oil prices has also eased the government's path to implementing the policy. The reduction follows a similar move last June when diesel subsidies were scaled back, boosting government revenue but coinciding with the ruling coalition's loss in a by-election. Second Finance Minister Datuk Seri Amir Hamzah Azizan said in April that Malaysia aims to reduce its fiscal deficit to 3.8 per cent of GDP this year, down from 4.1 per cent in 2024. The government has delayed other reforms, such as a planned expansion of the sales and service tax originally set for May 1, but electricity tariffs are still expected to rise in July. 'The overarching objective remains clear — to ensure that most Malaysians continue to enjoy RON95 at a subsidised price while addressing the leakage of subsidies to foreigners, businesses, and the highest income earners,' the MOF spokesperson told Bloomberg News.
Malay Mail
16-05-2025
- Business
- Malay Mail
Malaysia committed to petrol subsidy cuts in second half of 2025, says MOF
KUALA LUMPUR, May 16 — The government remains committed to reducing petrol subsidies in the second half of 2025 and is refining its implementation plan amid economic challenges, according to the Ministry of Finance (MOF). 'The government will continue to assess inputs and feedback in refining details of the RON95 subsidy rationalisation as it actively engages with a wide range of stakeholders,' a ministry spokesperson said in response to questions from Bloomberg News. Prime Minister Datuk Seri Anwar Ibrahim announced in October last year that the government would introduce a two-tier pricing system for RON95 petrol in mid-2025. Under the plan, the wealthiest 15 per cent would pay market rates, while others would continue to enjoy subsidised prices, potentially saving the government RM8 billion annually. 'The government remains committed to implementing the RON95 subsidy rationalisation in the second half of 2025 and will share further details in due course,' the spokesperson added was quoted as saying. In March, Anwar, who is also finance minister, assured Malaysians that the planned subsidy cut would not impact 80 to 90 per cent of the population. A recent drop in global oil prices has also eased the government's path to implementing the policy. The reduction follows a similar move last June when diesel subsidies were scaled back, boosting government revenue but coinciding with the ruling coalition's loss in a by-election. Second Finance Minister Datuk Seri Amir Hamzah Azizan said in April that Malaysia aims to reduce its fiscal deficit to 3.8 per cent of GDP this year, down from 4.1 per cent in 2024. The government has delayed other reforms, such as a planned expansion of the sales and service tax originally set for May 1, but electricity tariffs are still expected to rise in July. 'The overarching objective remains clear — to ensure that most Malaysians continue to enjoy RON95 at a subsidised price while addressing the leakage of subsidies to foreigners, businesses, and the highest income earners,' the MOF spokesperson told Bloomberg News.
