Malaysia will lower the price of 95 Ron gasoline to 1.99 ringgit/litre ($0.47/litre) from 2.05 ringgit/litre under a government subsidy programme effective 30 September, Malaysian prime minister Anwar Ibrahim said on 22 September.
All Malaysian citizens with a valid driving licence —about 16mn people — are eligible for the subsidy, he said. But non-citizens and large companies will continue to pay the unsubsidised price of around 2.60 ringgit/litre.
Police and military personnel will be able to purchase 95 Ron gasoline at the subsidised price of 1.99 ringgit/litre from 27 September, while members of the B40 income group — recipients of a cash aid scheme — will begin receiving the benefit from 28 September, he said.
The government has set a monthly cap of 300 litres of subsidised 95 Ron gasoline for eligible individuals, but e-hailing drivers and riders may apply for a higher quota.
Spec change delay
Malaysia was also due to implement some changes to its gasoline specifications by September this year, as part of a phased rollout to upgrade its gasoline specifications from what it calls Euro 4M to Euro 5M by 2027.
The first step, initially scheduled for September this year, was to cut the sulphur limit from 50ppm to 10ppm — in line with the Euro-5 emissions standards. But market participants with knowledge of the matter told Argus that this timeline will likely be delayed until next year as local refiners have yet to complete the necessary desulphurising upgrades yet.
Malaysia's typical gasoline demand is estimated at around 270,000-300,000 b/d, according to analysts' estimates.
