Prime Minister Anwar Ibrahim has announced a revision to Malaysia’s BUDI95 RON95 subsidy programme as part of the measures to minimise the impact of rising oil prices caused by the conflict in the Middle East.
Malaysia currently has one of the cheapest fuel prices in the region and it was earlier reported that Malaysia’s current petroleum supplies are sufficient to last at least until May 2026.
BUDI95 monthly quota reduced to 200L, price maintains at RM1.99/L
The monthly BUDI95 quota to purchase subsidised RON95 petrol will be reduced from 300L to 200L effective 1st April 2026.
However, the 800L monthly BUDI95 allocation for eligible eHailing drivers will still be maintained.
According to the Prime Minister, the latest revision will not affect 90% of Malaysians.
As revealed by Treasury Secretary-General Datuk Johan Mahmood Merican back in January, data shows that the average consumption for BUDI95 is about 83L per month and 90% of eligible Malaysians use less than 200L of their monthly allocation.
Measures to curb leakages and smuggling of subsidised diesel
Prime Minister Anwar Ibrahim also added that the subsidised diesel price of RM2.15/L for East Malaysia will be maintained.
However, the government is adding more measures to curb leakages and smuggling. This includes setting a maximum limit of 50L per purchase for light diesel vehicles for private, public transport and goods.
Meanwhile, diesel transport and goods vehicles not exceeding 3 tonnes will be limited to 100L per purchase.
For vehicles exceeding 3 tonnes, diesel purchase will be capped at 150L.
Are you affected by the reduced BUDI95 quota?
At the moment, the BUDI95 subsidised RON95 petrol price is set at RM1.99/L. With the 200L limit, you are eligible to purchase RM398 worth of subsidised RON95 petrol per month. If your monthly RON95 petrol expenditure is less than RM398, you shouldn’t be affected with the latest BUDI95 revision.
However, if you spend more than RM398/month, you will have to fork out more to pay the price of unsubsidised RON95 petrol. According to the latest pricing for 26 March to 1 April 2026, the cost of unsubsidised RON95 petrol is at RM3.87/L.
Assuming if you use exactly 300L of RON95 per month, your monthly expenditure will increase by an additional RM188 (100L x (RM3.87-RM1.99), from RM597 (with 300L subsidised fuel) to RM785 (200L subsidised + 100L unsubsidised) based on current unsubsidised fuel prices.
The gap will increase if the global oil prices continue to rise in the coming weeks.
