Under the new BUDI95 targeted fuel subsidy scheme, Malaysians get 300L of fuel at RM1.99/L.
The Malaysian government has announced that the retail price of non-subsidised RON95 petrol has been set at RM2.60 per litre, coinciding with the rollout of the BUDI95 targeted subsidy programme.
Transition to Targeted Fuel Subsidies
The launch of BUDI95 marks a significant shift in Malaysia’s fuel subsidy policy, moving away from blanket subsidies to a targeted approach. The programme is designed to ensure that eligible households and individuals continue to benefit from affordable RON95 petrol, while higher-income groups will pay the non-subsidised rate.
According to the Ministry of Finance, this approach allows subsidies to be channelled more effectively to those who need them most, reducing fiscal strain while promoting equity in fuel pricing.
BUDI95: How It Works
Under BUDI95, subsidy recipients will continue paying below-market rates for RON95, while non-recipients will now be subject to the newly announced RM2.60 per litre retail price.
Applications for BUDI95 are open online, and eligible Malaysians are encouraged to register to enjoy the benefits. The government has assured that the process is streamlined, with cross-agency verification to minimise fraud and ensure transparency.
Every month, all Malaysians holding an IC will be entitled to 300 litres of RON95 petrol at a subsidised rate of RM1.99/L, which amounts to RM200 worth of subsidised petrol per month.
We used a petrol pump this morning to understand how the system works in practice. It was straight forward even without using any downloaded apps. Just enter the amount of fuel you’d like to pay for, say RM10. Then tap to pre-pay using a credit or debit card like normal. Then enter your IC into the slot where you’d normally enter a credit or debit card. Let the card reader verify your IC. Then remove your card and you’ll see the balance of subsidies fuel that you’re eligible for. Fuel up as normal, the pump will display the VALUE of petrol you’re getting at RM2.6/L and not the amount you paid for.
Balancing Fiscal Responsibility and Public Needs
The government emphasised that targeted subsidies are necessary to maintain fiscal responsibility while continuing to protect lower- and middle-income groups. The BUDI95 programme is expected to help manage Malaysia’s subsidy expenditure, which has risen sharply in recent years due to global fuel price volatility.
At the same time, the policy supports efforts to encourage energy efficiency and reduce fuel consumption among high-income earners, aligning with broader sustainability goals.
What Drivers Need to Know
- RON95 retail price (non-subsidised): RM2.60 per litre
- Subsidised RON95: Available for approved BUDI95 recipients
- Applications: Open via the official BUDI95 portal
With this change, the government is urging Malaysians to adapt to a more sustainable and fair fuel subsidy system, while reaffirming its commitment to ensuring affordable mobility for those who need it most.
