Anwar, who is also finance minister, had announced last September that all Malaysians, regardless of income, would enjoy subsidised RON95 prices of RM1.99 a litre, down from the previous RM2.05 a litre.
As part of the move, subsidised RON95 fuel was capped at 300L a month.
To target subsidies for locals, foreigners with Malaysia-registered vehicles must now pay the unsubsidised RON95 price of about RM2.60 a litre, whereas previously they could benefit from the subsidy as eligibility was tied to the car but not nationality.
The RM2.5 billion savings projected for 2026 are a result of a reduction in subsidy leakage, Anwar said, noting that it is also subject to global crude oil price fluctuations and exchange rates.
“Syndicates smuggling to neighbouring countries have also been curbed,” he said.
Anwar also expressed appreciation towards the public’s “vigilance” in reporting attempts by drivers of foreign-registered vehicles to purchase RON95.
“This attitude is commendable, as it not only defends the rights of Malaysian citizens but also reflects national pride and identity,” he said.
Foreign-registered cars must fill up with the higher-grade RON97 fuel, which costs RM3.10 a litre.
300L SUBSIDY “ENOUGH”
On Wednesday, Anwar added that previous proposals had suggested limiting RON95 fuel subsidies to households earning below RM13,000 per month.
Still, the government rejected the idea as it would adversely affect civil servants, farmers and smallholders.
As part of the government’s plan to reform fuel subsidies, Anwar had originally announced in his Budget 2025 speech in October 2024 that subsidies for RON95 fuel would be cut for Malaysians in the top 15 per cent of the country’s income group.
The original proposal was expected to save about RM8 billion annually, higher than the projected savings of between RM2.5 billion and RM4 billion a year with the current arrangement.
But the government said last September it accepted the “trade-off” of not maximising the savings, acknowledging that the country faces cost-of-living pressures.
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