RON95 petrol subsidy should be given based on car type and not income, according to Wee Ka Siong

Should owners of more expensive cars be ineligible for the targeted RON 95 fuel subsidy programme? MCA president Wee Ka Siong thinks so and has called on the government to consider the eligibility for the subsidy to be based on the type and value of cars driven instead of an individual’s income.

Wee said drivers of vehicles such as the Perodua Myvi, Ativa and Alza should be entitled to receive a full government subsidy for RON 95 petrol. “However, those who drive a Mercedes-Benz, BMW, Ferrari or Lamborghini do not need the subsidy at all,” he said in a video posted on TikTok, as reported by FMT.

He added that those who are part of the M40 income group but prefer to drive luxury cars should also not be given any fuel subsidy. Wee went on to say the government should not punish those who practise moderation in their daily lives and are not reckless with their spending.

During the tabling of Budget 2025, it was announced that the government will restructure the RON 95 petrol subsidy in mid-2025. Soon after the announcement, it was revealed that a two-tier RON95 petrol pricing system based on net income would be introduced, with the T15 (a new term that means the top 15% earners) being ineligible for the subsidy – just how much you need to earn to fall into this category is still not finalised.

What are your thoughts on the matter? Should RON 95 fuel subsidies be provided based on income or the type of vehicle? Share them with us in the comments below.

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