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Malaysia’s Fuel Subsidy Burden Jumps Sharply as Global Oil Prices Climb

Malaysia's fuel subsidy bill is rising dramatically as the government moves to shield consumers from the impact of higher global oil prices. With tensions in the Middle East pushing energy costs upward, the country is now expected to spend about RM3.2 billion a month on fuel subsidies, a steep jump from the roughly RM700 million it was paying previously.

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Malaysia May Need a Smarter Fuel Subsidy Plan if Oil Prices Stay Elevated

Malaysia's fuel subsidy debate is back in focus, and this time the pressure is coming from outside the country. Economists are warning that if the conflict involving Iran keeps global oil prices elevated, the government may need to rethink how it supports petrol prices, especially for RON95. The concern is not just about today's pump price, but about how long public finances can keep absorbing the gap if energy markets stay volatile.

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RON95 Fuel Subsidy Reform to Roll Out in Second Half of 2025

Big changes are coming to how Malaysians pay for fuel—specifically RON95. According to Finance Minister II Datuk Seri Amir Hamzah Azizan, the government is preparing to implement the long-anticipated fuel subsidy rationalisation by the second half of 2025.

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