Petrol prices for RON95 will gradually be increased every week starting from January 2020 as subsidy is gradually removed.

End of Existing RON95 Subsidy

  • Current RON95 subsidy program will be removed and replaced with Targeted Subsidy Program as announced in Budget 2020.
  • Weekly price increase of RM0.01/l – RM0.02/l until RON95 reaches market price.
  • Maximum price cap of RM2.20/l on RON95 will also be removed.
  • The float of petrol price will be gradual to ensure prices of goods do not rise dramatically.
  • Enforcement action will be taken on profiteering under Price Control Act 1946.
  • Will not take effect in Sabah, Sarawak and Labuan with RON95 price maintained at RM2.08/l.

“We will float the price of petrol in stages, maybe two cents a week or one cent a week until the price of RON95 reaches the market price.” ~Chong Chieng Jen, Deputy Minister of Domestic Trade and Consumer Affairs


Change to Targeted RON95 Subsidy

  • New RM2.2b Targeted Subsidy Programme (Program Subsidi Petrol – PSP) to take effect from Jan 1, 2020.
  • Recipients of Bantuan Sara Hidup (BSH) to get fuel subsidy of RM120 for car owners (equivalent RM30/mth) and RM48 (equivalent RM12/mth) for bike owners every 4 months.
  • Applicable only if car below 1600cc (unless car above 10 years) or bikes below 150cc (unless bike above 7 years).
  • The last major change was in 2019 January with weekly fuel float pricing announced every Friday via Automatic Pricing Mechanism (APM).
  • Budget 2020 previously also announced that qualified non-BSH motorist would received Kad95 to enjoy fuel subsidy of RM0.30/l capped at 100 litres for car owners and 40 litres for motorcycles monthly.


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What are your thoughts on the change to the new RON95 targeted subsidy programme?