In an era of constantly rising living costs, it’s good to know that there are days when we get some news of action that addresses the trend. This morning, the Prime Minister announced various forms of aid for Malaysians and for motorists, there were two actions being taken to control or reduce motoring costs – suspension of scheduled toll rate increases and a lower price for RON95 petrol.
Ten highways were due for increases in toll rates (as part of the concession agreements) but the government has decided to step in to suspend the increases for an unspecified period. This will cost RM500 million in compensation to the concessionaires. Around 941,000 highway users will benefit.
The PLUS North-South Expressway and Penang Bridge are not mentioned on the list of highways which include the SKVE (South Klang Valley Expressway), MEX (Kuala Lumpur-Putrajaya), DUKE (Duta-Ulu Kelang), Cheras-Kajang Highway (Grand Saga), LATAR (KL-Kuala Selangor), LPT 2 (East Coast Expressway), New North Klang Straits Bypass, Senai-Desaru Expressway, Butterworth Outer Ring Road and Sultan Abdul Halim Mu’adzam Shah Bridge (2nd Penang Bridge).
As for the reduced price of RON95 petrol which has been expected for some time, the controlled current price of RM2.05/litre will be lowered to RM1.99/litre. This rate will only be available to Malaysian citizens and while the mechanism has not been explained, it is expected to make use of MyKad to enable purchases at the reduced rate. Those without a MyKad will pay a higher rate at the pump.
The rationalisation of fuel prices has long been considered as subsidies are massive to keep prices down for economic stability. In 2022, for example, fuel subsidies were as high as RM52 billion, which represented 74% of total subsidies by the government for that year. Last year, the government spent nearly RM20 billion to maintain RON95 at a constant rate of RM2.05/litre.
Fine-tuning of the mechanism to ensure only Malaysians qualify is now being finalised and the new rates are expected to be introduced by the end of September 2025.
