DATUK Seri Anwar Ibrahim announced that the price of RON95 petrol will be reduced from RM2.05 per litre to RM1.99 starting September 30 for Malaysians.
The Prime Minister said that for non-citizens, RON95 is set at RM2.60 starting the same date, adding, more than 16 million Malaysians will benefit from the reduction in the price of RON95 petrol under a targeted subsidy scheme known as BUDI MADANI RON95, or BUDI95.
Announcing the initiative during a monthly assembly with the Prime Minister’s Department, Anwar said the measure is part of a broader strategy to ensure equitable fuel access for Malaysians while reducing unnecessary subsidy expenditure.
“We have decided to set the RON95 rate from RM2.05 to RM1.99 per litre starting 30 September 2025,” said Anwar. “This is a privilege reserved solely for Malaysians.”
Eligibility is straightforward. All Malaysian citizens aged 16 and above with a valid driving licence and a functional MyKad chip will qualify automatically. No registration is required.
“Income is not a factor. Just like with the Sumbangan Asas Rahmah (SARA) initiative, what matters is that the applicant is a Malaysian with a driving licence,” Anwar added.
Foreign nationals and large commercial entities will not be eligible and must pay the full unsubsidised price, which is estimated at RM2.60 per litre. While this is the unsubsidised rate, it remains lower than petrol prices in several regional neighbours — including Indonesia, Thailand, and Singapore.
The government expects the scheme to benefit approximately 16 million Malaysians. The shift from a blanket subsidy model to a targeted one is designed to curtail wastage and ensure public funds are redirected into essential sectors such as health, education, infrastructure, and direct aid programmes like Sumbangan Tunai Rahmah (STR) and SARA.
Under BUDI95, a monthly ceiling of 300 litres of subsidised fuel per person will apply. However, this limit does not extend to e-hailing drivers and riders, who may apply for additional allocations to support their operational needs.
To redeem the subsidy, motorists may verify their MyKad at petrol station counters or directly at the pump. Alternatively, digital applications such as Touch ’n Go, Setel by Petronas, and CaltexGo will also support the subsidy process, eliminating the need to present a MyKad for every purchase.
To avoid congestion, MyKad readers will be installed both at payment terminals and within petrol station kiosks.
The implementation will be rolled out in stages; on 27 September, police and military personnel will receive early access to the reduced rate, on 28 September, the scheme will be made available to STR recipients within the B40 income group and from 30 September, the programme will be extended nationwide to all eligible Malaysians.
The government has reminded citizens to ensure their MyKad chips are functional and that their driving licences are valid. However, those who have previously received SARA or STR aid do not need to replace their MyKad, as successful claims indicate the chip is functioning.
Further details and official updates on BUDI95 will be communicated by the Ministry of Finance through its verified channels. - September 22, 2025
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