KUALA LUMPUR (Reuters) -Malaysia will lower the price of the widely used RON95 transport fuel for its citizens, Prime Minister Anwar Ibrahim on Monday, as the government pushes ahead with a long-awaited plan to adjust fuel subsidies and provide cost of living relief.
The price of subsidised RON95 fuel will be reduced to 1.99 ringgit ($0.47) per litre from 2.05 ringgit per litre, effective September 30, Anwar said at a regular briefing at the Prime Minister’s Department.
The new subsidised fuel price will only be available for Malaysians with a valid driver’s license, with non-citizens expected to pay 2.60 ringgit at the pump, Anwar said.The government will also cap subsidised fuel purchases at 300 litres per month per person, with exceptions to be made for ride-hailing drivers, Anwar said.
Any savings from the subsidy changes will be channeled towards improving public infrastructure and aid for the needy, he said.
The changes were announced in July, although they did not go as far as initial plans to also remove RON95 subsidies for the wealthy.
Anwar’s administration has taken a number of measures to boost revenue and productivity, including a minimum wage hike, increased electricity tariffs on heavy power users and an expanded sales and services tax.
($1 = 4.20 ringgit)
(Reporting by Rozanna Latiff; Editing by John Mair)
