According to government data, almost all Malaysians are well within the Budi Madani RON95 (BUDI95) petrol subsidy quota, with 90% of Malaysians consuming less than 200 litres of RON95 fuel per month. The average consumption rate hovers around just 83 litres — far below the 300 litres afforded to every Malaysian with a driving licence.
In spite of this, Treasury Secretary-General, Datuk Johan Mahmood Merican has reassured Malaysians that the government will not be reducing the BUDI95 300 litre monthly quota according to income class, despite previous proposals for a more precise mechanism to target the higher income group, Bernama reports.
The decision is aimed at avoiding additional financial burdens on households while authorities continue analysing consumption patterns to evaluate the policy’s effectiveness.
Speaking at the 18th Annual Malaysian Corporate Day, Johan said, “We need to analyse the data first to identify any potential unusual usage before considering changes to the parameters. It is a big change for the country, so we don’t want to make too many adjustments in the short term.”
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“We need to focus our efforts on eliminating leakages first, whether from foreign consumers or companies using subsidised fuel, and allowing more Malaysians to benefit from BUDI95, rather than engaging in lengthy debates.
“Whether we need to create a phased mechanism, for example, individuals earning more than RM20,000 no longer receiving this benefit, that matter is not being discussed at this time,” Johan added.
It was revealed previously by Prime Minister Datuk Seri Anwar Ibrahim that the BUDI95 fuel subsidy programme has saved the government at least RM800 million since its implementation on September 30, 2025.
The programme has surfaced instances of irregular usage that clearly points at subsidy leakages from fuel smuggling, including those depleting the 300L subsidised RON95 quota in a short period of time, or those who have repeatedly purchased fuel within border states.
Under the programme, the price of RON95 petrol for eligible individuals is capped at RM1.99 per litre within the quota, a slight decrease from the previous 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 currently set at RM2.54 per litre at the time of writing.
RELATED: Government saved RM800 million since implementation of BUDI95 fuel subsidy – Anwar
