THE Government has launched its most comprehensive fuel subsidy programme to date, with the BUDI MADANI RON95 (BUDI95) initiative now available to 16 million eligible citizens.
Rolled out at midnight, the MyKad-based system entitles all Malaysians with a valid driving licence to a monthly subsidy of up to 300 litres of RON95 petrol at a reduced price of RM1.99 per litre.
Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, had earlier reassured middle-income earners (M40) that the subsidy would not be limited to lower-income groups.
Speaking on 22 September, he confirmed that all citizens meeting the basic criteria would be automatically eligible.
The move comes as part of the government’s broader subsidy rationalisation strategy aimed at reducing leakages, curbing smuggling and ensuring targeted financial support.
The initiative follows a similar diesel subsidy reform which reportedly saved RM4 billion—funds redirected to increase allocations for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes from RM10 billion to RM13 billion.
BUDI95 was initially introduced on 27 September for 300,000 police and military personnel, then extended to STR recipients, before its national launch. According to Finance Minister II Datuk Seri Amir Hamzah Azizan, eligible individuals could save up to RM200 monthly under the scheme. E-hailing drivers are exempt from the 300-litre cap and may apply for additional allocations.
Bernama cited Economic analyst Professor Dr Ahmed Razman Abdul Latiff of Putra Business School welcoming the development, describing it as “a positive surprise.”
“Previously, it was announced that 85 per cent of Malaysians, including the B40, M40 and civil servants, would not be affected by RON95 subsidy targeting. This time, however, the government announced that 100 per cent of eligible Malaysians will benefit from BUDI95,” he said.
He also praised the technical rollout of the initiative, noting that no major issues have been reported. “Most complaints have been minor, mostly stemming from inactive driving licences, unreadable MyKad chips or old identification numbers. Apart from these, the programme has been running very smoothly,” he added.
The subsidy is accessed using the national identification card, MyKad, at participating petrol stations. Users simply verify their identity and proceed with payment by cash, card or e-wallet. The system is designed to prevent smuggling and unauthorised claims while maintaining some of the region’s lowest petrol prices.
Anwar previously emphasised that “no country, including oil-producing nations, has cut petrol prices for its citizens.” Malaysia, by contrast, has taken “the bold step of reducing petrol prices for the people.”
In a sign of public enthusiasm, petrol stations across the Klang Valley and other states saw a surge in visitors at midnight. Some had just finished night shifts, while others waited specifically to take advantage of the new price point.
In Selangor, 23-year-old factory operator Mohamad Johari Mustaffa said he had no difficulty using the new system. “I’m not fully used to using MyKad at petrol stations yet, but it’s not complicated and I’ll get the hang of it quickly,” he said at a station in Batu Tiga, Shah Alam.
Lorry driver I. Ahrishan, 34, was equally pleased. “I ride my motorcycle to work. I remembered that BUDI95 started at midnight, and after filling my tank, I noticed I saved about RM1.50 compared to usual,” he said.
In Perak, model toy designer Oh Jee Shyan, 42, waited until midnight at a station in Ipoh to be among the first to benefit. Spending approximately RM400 a month on petrol, he estimated a saving of around RM12 per fill-up.
The government has urged citizens to ensure that their MyKad and driving licence details are up to date via the official portal at [www.budimadani.gov.my](http://www.budimadani.gov.my). -September 30, 2025
