Petrol Subsidies to Take a Hit in Malaysia: Brace Yourselves for RON95 Price Tag Shockers!

Well, brace yourselves, fellow Malaysians, because it seems like the days of cruising on petrol subsidies might soon be running on fumes!

Economy Minister Rafizi Ramli has confirmed that Malaysia is putting its foot down on petrol subsidies this year. Why? To nurse the country’s fiscal deficit back to health, of course.

But fear not, my friends, because Rafizi assures us that the government’s focus on lending a hand to the needy is still at full throttle. He even dropped this gem about “managing the sequence” of subsidy cuts, fearing that if they mess it up, we might be facing inflation faster than you can say “fill ‘er up!”

Rafizi in an interview, said “We are sticking to it,” as if he’s talking about a stubborn stain that just won’t come out.

Now, hold onto your wallets, because the government has set its sights on shaving that fiscal deficit from 5% to a svelte 4.3% of GDP this year. And guess what’s on the chopping block? Yep, those blanket subsidies for RON 95 petrol that gobbled up a hefty RM81 billion last year.

Rafizi, warned that if we don’t stick to the timeline, our precious dollars and cents might go off on an adventure of their own. Talk about budgeting drama!

But wait, there’s more! Did you know that only locally-registered vehicles get to sip on that sweet, sweet subsidized fuel? And if you’ve been living under a rock, you might have missed the unveiling of unsubsidized RON 95 petrol in Perlis last February. It hit the pumps at a whopping RM3.22 per liter! So, brace yourselves for a shocker: it may up substantially more expensive per litre.

Last year, Rafizi teased us with news about a shiny new subsidy program for RON 95 petrol, set to replace the old blanket petrol subsidies program.

It’s like waiting for the latest season of your favourite TV show – the suspense is killing us. Will it debut in the second half of this year? Only time will tell, my friends. So, buckle up and enjoy the ride, because Malaysia’s fiscal rollercoaster is just getting started.