Hamzah said the government can only afford to do this because oil prices are dropping globally, adding that many other countries in the region, including Thailand, have lowered their petrol prices over the past few weeks.

“Global oil prices have already declined … that’s why. It’s not just because (Anwar) decided to lower (the price of RON95),” the Bersatu deputy president said at a press conference in Parliament.

Yesterday, Anwar said Malaysians will enjoy a lower RON95 price of RM1.99 per litre once the targeted subsidies come into effect. It is currently fixed at the already subsidised price of RM2.05 per litre.

Anwar, who is also finance minister, said further details on the targeted subsidies would be announced towards the end of September.

In 2023 and 2024, Putrajaya had spent nearly RM20 billion both years to cover the RON95 subsidies.