The Malaysian government is reportedly planning to reduce the monthly quota for subsidised RON95 petrol under the Budi Madani RON95 (BUDI95) programme. According to a report by The Edge, the current 300-litre limit will be cut to 200 litres per month.
The new quota for subsidised fuel is set to remain priced at RM1.99 per litre and is expected to take effect from April 2026. An official announcement regarding this change may be made as early as this week.
This move comes as the ongoing war in Iran continues to drive fuel prices higher across the globe. Brent crude, which surged to nearly USD120 (approx. RM476) per barrel on 9 March, has since eased to USD94.49 (approx. RM375) per barrel. Despite the slight dip, prices remain up by over 33% from the USD70.84 (approx. RM281) recorded on 26 February, just before the conflict erupted.
The quota tightening is viewed as a necessary fiscal measure. The Ministry of Finance is currently grappling with a subsidy bill that Prime Minister Datuk Seri Anwar Ibrahim warned could hit RM24 billion this year if global crude prices remain above USD110 (approx. RM436) per barrel.
Government data suggests that the move may not impact the majority of motorists. Approximately 90% of Malaysians currently consume less than 200 litres of RON95 fuel per month, with average consumption hovering around 83 litres.
This reported reduction in the BUDI95 quota follows a surge in prices for non-subsidised petrol during the period of 26 March to 1 April 2026. The current retail prices are listed below:
- Non-subsidised RON95 petrol: RM3.87/litre
- RON97 petrol: RM5.15/litre
- Diesel: (Peninsular Malaysia): RM5.52/litre
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