RON95 Petrol Subsidy Changes to Be Announced in Next Month's Budget 2025 – RHB IB.
RHB Investment Bank (RHB IB) expects to share more information about changes to the RON 95 petrol subsidy and the possible return of the goods and services tax (GST) in the 2025 Budget, which will be presented on October 18, according to Bernama.
The bank believes that the changes to the RON 95 petrol subsidy will happen by the end of this year. Currently, RON 95 petrol is sold at the maximum price of RM2.05 per litre, a limit set by the Malaysian government in February 2021.
Analyst Alexander Chia stated, “Even though there has been some progress with reforms, we think the government still has enough political support to make further important changes to subsidies and tax policies. This could help reduce the fiscal deficit, allow for more infrastructure investments, and manage the national debt.”
Chia also mentioned that two main initiatives are still pending: adjusting the RON 95 petrol subsidy and reviving the GST, which will align with the full rollout of e-Invoicing.
The subsidy changes for diesel fuel started on June 10 this year in Peninsular Malaysia, causing its price to rise by RM1.20 to RM3.35 per litre. After some adjustments, diesel prices dropped to RM2.95 per litre last week, with no expected changes for the coming week. In Sabah, Sarawak, and Labuan, the diesel price remains the same at RM2.15 per litre.
Although the government previously indicated that the RON 95 petrol subsidy would be removed this year, Economy Minister Rafizi Ramli said in June that they are still studying this decision. As of today (September 26), the price of unsubsidised RON 95 petrol in Malaysia is RM2.81 per litre, according to an unsubsidised fuel outlet called Double.
26 Sep 2024
