Concerns Rise Over RON95 Subsidy Cuts for High-Income Earners Amid Cost of Living Fears*

KUALA LUMPUR, Nov 8 — Prime Minister Datuk Seri Anwar Ibrahim's proposal to end RON95 fuel subsidies for the top 15% income earners (T15) has sparked concern among middle-class families, who feel unfairly targeted. With expectations of rising fuel prices, households may need to reassess their spending on petrol, particularly since many rely heavily on cars.

For instance, a typical family car like the 2023 Honda City 1.5S would cost about RM340 a month for fuel at the subsidized rate. If the subsidy is removed, the cost could soar to RM500 monthly, potentially consuming 10% of a couple's combined take-home salary.

In contrast, switching to an electric vehicle like the BYD Dolphin could reduce costs significantly. Charging the Dolphin from empty costs between RM50 to RM70, resulting in annual costs of around RM2,700, which is substantially less than the petrol expenses for a Honda City.

However, the initial investment for a BYD Dolphin is RM100,000, leading to monthly payments exceeding RM1,500 over five years, making the switch financially challenging for many households.

For those considering alternatives, fuel-efficient motorcycles may provide a cheaper option. For example, a Yamaha Nmax 155 scooter would cost approximately RM135 a month for fuel, significantly less than a car, highlighting the potential for increased interest in two-wheeled vehicles as fuel prices rise.