Two-tiered pricing system to be implemented for RON95 petrol, says Rafizi

PUTRAJAYA: A two-tiered pricing system is expected to be implemented for RON95 petrol subsidies, says Economy Minister Rafizi Ramli.

However, the specific mechanism for this system will be decided at a later date, as the government is still in discussions with various stakeholders, including the Petrol Dealers Association.

“Previously, we considered providing cash payments to families, but this would not involve petrol stations because it doesn’t include tiered pricing,” Rafizi said.

“So, it depends on how the government plans to redirect the savings. Will it be through cash payments or direct subsidies to the 85% of the population?” he told reporters during the 2024 National Statistics Day Celebration and Statistics Portal Kick-Off Ceremony on Sunday (Oct 20).

Last Friday (Oct 18), Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, announced that targeted subsidies for RON95 petrol would be implemented by mid-2025, but assured that 85% of the population would continue to receive the subsidies.

Anwar noted that the government had subsidised RON95 to the tune of RM20bil through 2023.

Further explaining the plans, Rafizi said the system for RON95 will differ from the targeted subsidy programme used for diesel.