By Danial Dzulkifly
SHAH ALAM, July 23 — Prime Minister Datuk Seri Anwar Ibrahim today announced a series of cost-of-living measures, including a targeted fuel subsidy that will lower the price of RON95 petrol to RM1.99 per litre and a freeze on toll hikes involving 10 highways nationwide.
Speaking during a televised national address today, Anwar said a detailed announcement on the targeted petrol subsidy will be made by the end of September, a move he said will ensure continued support for ordinary Malaysians while curbing leakages.
The new rate is lower than the current subsidised price of RM2.05 per litre and is expected to benefit around 18 million Malaysians, including youths, gig workers and lower- to middle-income households.
“This targeted approach aligns with the government’s efforts to optimise national resources for the benefit of the people and to reduce subsidy wastage.
“For 2023 and 2024, subsidies for RON95 petrol alone are estimated to cost nearly RM20 billion annually. Even though global oil prices have declined this year, the unsubsidised price of RON95 remains around RM2.50 per litre, significantly higher than the subsidised rate paid by the public.”
Anwar said foreigners will be excluded from the new scheme and must pay market rates once the system is rolled out.
He also drew comparison to the recent electricity tariff adjustment, noting that the targeted changes provide relief to the majority of households.
“Although some irresponsible parties claim electricity bills have gone up, the fact is 85 per cent of domestic users saw a drop in their July 2025 bills, for the same level of usage, with reductions of up to 14 per cent,” he said.
For the July 17-23 period, RON97 is priced at RM3.21 per litre, while diesel is sold at RM2.91 per litre in Peninsular Malaysia and RM2.15 in Sabah and Sarawak.
On the toll hike freeze, Anwar said the Federal government will be absorbing over RM500 million in compensation to maintain the current rates.
Among the affected highways are the Maju Expressway (MEX), East Coast Expressway Phase 2 (LPT2), South Klang Valley Expressway (SKVE), Senai–Desaru Expressway (SDE), and the Butterworth Outer Ring Road (LLB).
