KUALA LUMPUR (Dec 10): The classification of the top 15% income group, which will be excluded from the proposed targeted RON95 petrol subsidy, is expected to be announced by the first quarter of 2025, Economy Minister Rafizi Ramli said.

He added that individuals deemed ineligible for the subsidy will have an opportunity to appeal.

"There is a proposal to implement an appeal mechanism, which will be in place before the targeted subsidy is rolled out at petrol stations," Rafizi said during a question-and-answer session in the Dewan Rakyat on Monday.

The transition from a blanket subsidy to a targeted subsidy for RON95 petrol is part of the government’s reform efforts to alleviate the growing burden on the national coffers.

Prime Minister Datuk Seri Anwar Ibrahim, during the Budget 2025 presentation earlier in October, announced plans to rationalise RON95 petrol subsidies by mid-2025.

The Ministry of Finance has previously indicated a two-tier pricing mechanism, where subsidised prices will be displayed at retail stations for eligible recipients, while those not eligible will pay the market price.

On Tuesday, Rafizi noted that the restructuring of RON95 subsidies is projected to save the government RM5-RM6 billion, based on an estimated crude oil price of US$75 per barrel in 2025.

He emphasized that despite the reforms, the government will continue allocating RM12 billion for RON95 subsidies to support the majority of the population.

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