Who would be eligible for RON95 subsidy? Putrajaya says it depends on size of households and number of cars

KUALA LUMPUR, Nov 18 — Putrajaya said today that a Malaysian’s eligibility for RON95 subsidy will among others be determined by the size of household, employment status, and how many cars they have.

New Straits Times quoted Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh saying that the eligibility will also take into account the Basic Expenses for Decent Living (PAKW) and Cost of Living Index that were recently launched by the Department of Statistics Malaysia (DOSM).

“All factors involving expenditure have been taken into account. However, regarding RON95, if subsidy targeting takes place in the future, it will have an impact on households that rely on RON95.

“Therefore, in the study developed by DOSM, in which the ministry was briefed, the living cost indicators have been considered,” she was quoted telling the Dewan Rakyat.

Other factors that are included in the calculation are whether both husband and wife are working, or the number of schooling children.

She was responding to a supplementary question by MP Azahari Hasan (PN-Padang Rengas).

Earlier this month, DOSM published its first Cost of Living Indicators report for 2023, revealing crucial data on the basic expenditure required for a decent standard of living.

The report included the Cost of Living Index, and a new Basic Expenditure of Decent Living — which is analysed based on demographic details which include household characteristics, household size as well as location.

In October, Prime Minsiter Datuk Seri Anwar Ibrahim said during Budget 2025 that the government would retarget RON95 subsidies by the middle of next year to eliminate assistance from the “T15” that he also described as “ultra-rich”.

Economy Minister Rafizi Ramli then said that the government’s definition of this “T15” would be multi-factorial, involving their levels of disposable income and cost of living, among others.