Prime Minister Datuk Seri Anwar Ibrahim, has announced that the rationalisation of RON95 petrol subsidies will commence on September 30, 2025, under the new “Budi Madani RON95 (BUDI95)” program.
The implementation of the BUDI95 programme will be carried out in phases to ensure a smooth system rollout without a sudden surge in usage. The first phase begins on September 27, 2025 (Saturday), when the system will be opened early to 300,000 members of the military and police.
This will be followed on September 28, 2025 (Sunday), with the system opening to Sumbangan Tunai Rahmah (STR) recipients from the B40 group. Finally, on September 30, 2025 (Tuesday), the BUDI95 system will be fully opened to 16 million Malaysian citizens aged 16 and above who possess a MyKad (IC) and an active driving licence.
Under the new programme, the price of RON95 petrol for eligible individuals will be set at RM1.99 per litre, a slight decrease from the current blanket subsidised price of RM2.05 per litre. Those who are ineligible for the subsidy, including foreigners and corporations, will pay the market price for RON95, which is determined by the Ministry of Finance and is estimated to be around RM2.60 per litre.
All eligible citizens will receive a monthly quota of up to 300 litres of subsidised RON95 petrol. This monthly eligibility ceiling was set based on the findings of a study by the Department of Statistics, the government says, which found that more than 99% of private vehicle drivers in Malaysia do not exceed this monthly amount.
An exemption is made for e-hailing drivers, who will not be subject to this 300 litres ceiling and can apply for additional quota to ensure their livelihood is not affected.
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The government has simplified the purchasing process for citizens. No prior registration is required; the only additional step is a simple verification using MyKad at the point of purchase. To reduce the risk of congestion, MyKad reader terminals will be available both inside the petrol station’s convenience store and at the pump terminals themselves. Digital options such as the Touch ‘n Go eWallet and oil company apps like Setel by Petronas, CaltexGo, and the Shell Asia app are also supported, presumably through an e-KYC process.
The government advises the public to ensure their MyKad chip is functional, and their driving licence is valid before the transition. However, citizens do not need to rush to renew their MyKad if they have successfully redeemed SARA aid or the SARA Appreciation assistance, as this confirms that the MyKad chip is functioning properly.
The Ministry of Finance (MOF) will issue further information regarding BUDI95 from time to time, and the public is advised to refer to official MOF channels for the latest updates.
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