October 1, 2025 | 07:40 pm
TEMPO.CO, Jakarta - The Malaysian government has reduced the price of RON 95 fuel from RM2.05 to RM1.99 per liter, equivalent to around Rp7,864 per liter. This price is effective from Tuesday, September 30, 2025.
This price is much cheaper than the current fuel prices in Indonesia, which range from Rp10,000 to Rp14,000 per liter. Specifically, the price of Pertamina's RON 95 fuel, known as Pertamax Green, remains at Rp13,000 per liter as of September 1, 2025.
According to an energy analyst from Gadjah Mada University (UGM), Fahmy Radhi, the cheaper price of fuel in Malaysia is mainly due to the significant subsidy from the local government.
"The component of the subsidy is quite substantial. Moreover, the higher the RON number, the greater the amount of subsidy provided. Through this approach, Malaysia encourages the use of cleaner fuels," Fahmy said when contacted on Wednesday, October 1, 2025.
Fahmy explained that the price of crude oil in Malaysia and Indonesia is actually the same because both countries follow world oil prices. However, the subsidy burden in Malaysia is not as heavy because its population is relatively smaller compared to Indonesia.
Fahmy assessed that the low fuel prices in Malaysia are not related to the level of crude oil production or lifting. "Indonesia's crude oil production is actually much larger than Malaysia's. Therefore, the lifting factor does not have an impact," he said.
In addition to the subsidy, Fahmy stated that a striking difference in the energy policies of both countries lies in the management of energy, particularly gas. The Malaysian government has established a city gas pipeline network, enabling gas to be provided directly to households.
Meanwhile, in Indonesia, Fahmy continued, the development of gas infrastructure is left to private enterprises, resulting in limited coverage and higher distribution costs.
"Indonesia actually produces a significant amount of natural gas. However, its price is higher than Malaysia's due to the incomplete development of infrastructure, leading to high distribution costs," he explained.
Previously, Malaysian Prime Minister Anwar Ibrahim announced the reduction of RON 95 fuel from RM 2.05 to RM 1.99 per liter on Monday, September 22, 2025. "Starting on September 30, all Malaysian citizens will enjoy the new price of RON 95, which is RM1.99 per liter, by using MyKad (Malaysian identity card), at gas stations or through the gas station application," said Anwar, as quoted from Antara.
Prime Minister Anwar explained that Malaysian police and army personnel would enjoy this policy earlier, starting on September 27, 2025. Meanwhile, recipients of direct cash assistance could obtain fuel at the new price from September 28, 2025.
Anwar stated that Malaysia took bold steps in lowering the price of RON 95 to RM1.99 per liter when the world is facing an uncertain global economic situation. He referred to the policy as the highest appreciation for all Malaysians who have been working tirelessly and determinedly with the MADANI (civilised) government to enhance the country's economic growth.
"Our current success is the result of the strength of people who never give up," said Anwar.
Malaysia vs Indonesia Fuel Prices
The fuel prices at Petronas gas stations in Malaysia by the end of September 2025 were:
- RON 95: RM1.99 (Rp7,864) per liter for Malaysian citizens with subsidy.
- RON 95 market price: RM2.60 (Rp10,245) per liter for foreigners.
- RON 97: RM3.21 (Rp12,640) per liter.
- Diesel Euro 5: RM2.93 (Rp11,530) per liter.
Meanwhile, Pertamina's fuel prices in Indonesia as of October 1, 2025, were:
- Pertalite (RON 90): Rp10,000 per liter.
- Pertamax (RON 92): Rp12,200 per liter.
- Pertamax Green (RON 95): Rp13,000 per liter.
- Pertamax Turbo (RON 98): Rp13,100 per liter.
- Dexlite: Rp13,700 per liter.
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