[Update - 6:00 pm, 12 May] Deputy Finance Minister Liew Chin Tong has released a statement on his Facebook page, clarifying that the quote attributed to him at an event earlier today was “taken out of context”, and the 150-litre quota is currently not a “potential government policy”. The full statement is as below: At a fireside chat at an AFFIN Bank event this morning, I was asked about the government's strategy to manage the global energy crisis. It’s unfortunate that what I said was taken out of the context. In no instance I announced anything on behalf of the government, and in no instance that I announced the 150 litres limit as potential government policy. I said: 1. The Budi95 mechanism is a good tool as it provides us with data to understand the travel pattern of Malaysians. 2. The top priority of the government and everyone in the society is to ensure that we have sufficient supply for as long as possible. 3. As a society, we must ensure that we have petrol supply for the longest of time, and at some point we should build consensus to support the effort to reduce fuel consumption. 4. I regret that my comments have caused a media storm and I hope all would consider the full context of what I said. Thank you.
The Malaysian government is reportedly considering reducing the monthly quota for the Budi Madani RON95 (BUDI95) programme from 200 litres to 150 litres, though no timeline has been provided for this proposed change. The move comes as the government seeks to manage fuel supply and improve subsidy efficiency, the New Straits Times reports.
Deputy Finance Minister Liew Chin Tong stated that based on consumption data, 80% of Malaysians consume less than 200 litres of petrol monthly, and further stated that 60% of the population uses less than 150 litres monthly.
Liew emphasised that the shift is more than a fiscal necessity, noting it is a strategic move to secure long-term fuel resilience against geopolitical shocks. “The number one concern for the nation is how to ensure that we have supply and consistent supply for as long as possible, even if the war drags on,” he stated.
The proposed drop follows a temporary reduction from 300 litres to 200 litres monthly starting in April 2026 in light of the ongoing conflict in the Middle East, which has triggered a worldwide energy crisis. As a result, the government now spends approximately RM7 billion a month to sustain the BUDI95 programme compared to RM700 million monthly before the conflict began.
Despite the rising subsidy bill, Liew stressed the importance of ensuring affordable fuel access, particularly for lower-income groups, including motorcycle riders and the workforce. For context, the price of non-subsidised RON95 petrol at the time of writing is RM4.02/litre as opposed to the subsidised price of RM1.99/litre at the pumps for eligible recipients.
The purported reduction comes as the government finalises plans for a more targeted BUDI95 programme. This could see Malaysians in the T5, T10, T15, and T20 income groups lose their eligibility for the programme.
