BUDI95 – Targeted RON95 Subsidy: What Malaysians Need to Know
The government-backed initiative BUDI95 introduces a reformed, targeted subsidy system for RON95 petrol in Malaysia. Under this system, eligible Malaysian citizens benefit from subsidised fuel prices, while non-citizens or large corporate users pay the unsubsidised rate. The move aims to ensure subsidies reach intended beneficiaries, curb fuel abuse, and support fiscal sustainability while maintaining assistance to households.
Key Details of BUDI95 Subsidised Price & Eligibility Eligible Malaysians (aged 16+, with valid driving licence) receive RON95 petrol at RM 1.99 per litre. SKY TECHLEDGER SOLUTIONS+2Kementerian Kewangan Portal+2 Non-citizens and large companies pay the non-subsidised rate of RM 2.60 per litre. SKY TECHLEDGER SOLUTIONS+2Kementerian Kewangan Portal+2
Monthly Quota Each eligible individual can purchase up to 300 litres per month at subsidised price. SKY TECHLEDGER SOLUTIONS+2Paul Tan's Automotive News+2 For most Malaysian households and personal users, this quota is considered sufficient. According to recent data, approximately 95% of Malaysians consume less than 180 litres monthly, making the 300-litre limit more than adequate. Malay Mail+1
For e-hailing drivers, special provisions apply — they may be eligible for higher quota allocations under certain conditions. SKY TECHLEDGER SOLUTIONS+2pocketnews.com.my+2
Verification and Implementation Process At participating petrol stations, drivers must present their official identity (MyKad) and valid licence at the pump for verification. This ensures only qualified individuals access the subsidised price. SKY TECHLEDGER SOLUTIONS+2Paul Tan's Automotive News+2 The system supports high transaction volume, capable of handling more than 30,000 transactions per minute, to accommodate nationwide demand. SKY TECHLEDGER SOLUTIONS
Rationale Behind the Targeted Subsidy The previous fuel-subsidy mechanism applied broadly to all users (citizens, non-citizens, corporate, individual), which resulted in substantial leakages, abuse, and misuse of subsidised petrol. Paul Tan's Automotive News+1 Under BUDI95, subsidy benefits are limited to genuine end-users (Malaysian citizens), thereby preventing exploitation by non-eligible parties and reducing illicit cross-border resale or corporate misuse. Kementerian Kewangan Portal+2The Star+2 The expected fiscal savings from this targeted approach are substantial: estimates indicate the government could save between RM 2.5 billion and RM 4 billion annually. These savings can then be redirected to welfare initiatives, public services, and infrastructure development. Paul Tan's Automotive News+2NST Online+2
Impact and Benefits for Citizens & Economy For individual households and commuter drivers, the subsidised price and quota system make fuel more affordable — providing real savings and easing living costs. For frequent travellers or small business owners, predictable fuel costs help in budgeting and operational planning, especially under rising global fuel prices. For the government and public sector — the rationalised subsidy reduces fiscal burden, improves resource allocation, and channels savings toward social welfare and development programs. The digital verification and quota tracking system enhances transparency and accountability, reducing opportunities for fraud, smuggling, or abuse in the fuel supply chain. The Star+2Kementerian Kewangan Portal+2
Important Considerations & Rules Subsidy entitlement is strictly tied to identity verification (MyKad + valid licence) and monthly quota limits. Non-citizens and companies are excluded from subsidised price under this scheme. Paul Tan's Automotive News+2SKY TECHLEDGER SOLUTIONS+2 Exceeding the 300-litre monthly limit results in having to pay the unsubsidised rate (RM 2.60/litre). Malay Mail+2Paul Tan's Automotive News+2 System controls are in place to detect and prevent suspicious or repetitive refuelling patterns to avoid misuse. The Star+2The Star+2
Conclusion
The rollout of BUDI95 marks a significant shift in Malaysia’s fuel subsidy policy from a universal blanket subsidy to a more prudent, targeted, and accountable system. For eligible citizens, the subsidised RON95 price at RM 1.99 per litre coupled with a reasonable monthly quota offers tangible savings and relief in face of global fuel price fluctuations. At the same time, the rationalised subsidy helps the government manage fiscal resources more effectively, curb subsidy leakages, and redirect savings toward essential social welfare and public infrastructure. BUDI95 represents a balanced approach that supports citizens’ needs while ensuring long-term economic sustainability and fairness.
