Malaysia

Over 13 million Malaysians save RM800 million in first month of BUDI95 implementation

Finance Ministry says the targeted RON95 subsidy programme surpasses projections, benefiting low- and middle-income earners while curbing misuse and strengthening fiscal reform

Updated 9 months ago · Published on 01 Nov 2025 4:32PM

Over 13 million Malaysians save RM800 million in first month of BUDI95 implementation
A total of 16.55 million citizens have been approved to receive subsidised RON95 petrol at RM1.99 per litre - November 1, 2025

THE Ministry of Finance announced today that over 13 million Malaysians have collectively saved around RM800 million in fuel costs during the first month of the BUDI MADANI RON95 (BUDI95) targeted subsidy programme.

Since its rollout on 30 September 2025, a total of 16.55 million citizens have been approved to receive subsidised RON95 petrol at RM1.99 per litre — compared with RM2.60 without subsidy — surpassing the government’s initial projection of 15 million eligible users.

As of 31 October, about 13.1 million Malaysians had made BUDI95 transactions amounting to RM2.66 billion, covering the purchase of 1.33 billion litres of subsidised RON95. The figure includes more than 23,000 registered fishermen and boat users without active driving licences, particularly in Sabah and Sarawak.

“The BUDI95 programme ensures that citizens receive subsidies directly without a complicated process, allowing the government to channel savings back into development and public welfare. Clearly, this programme delivers a dual benefit to both the people and the nation,” said Finance Minister II, Senator Datuk Seri Amir Hamzah Azizan.

Balanced Usage and E-hailing Support

Under BUDI95, all Malaysian MyKad holders aged 16 and above with an active driving licence are eligible to purchase up to 300 litres of subsidised RON95 petrol monthly.

Since 13 October, the MADANI Government has raised the monthly fuel limit for full-time e-hailing drivers to 600 litres, benefiting nearly 58,000 drivers nationwide.

For October 2025, individual BUDI95 recipients used an average of 98.2 litres — well below the 300-litre monthly cap. As of 26 October, fewer than 0.7% of all recipients had used their full quota.

Among them, only 0.6% of private users and 0.3% of registered boat operators without driving licences reached their monthly limit.

Curbing Abuse and Strengthening Oversight

The Finance Ministry has identified several unusual usage patterns, including recipients depleting their full quota in short periods or repeatedly purchasing petrol near national borders.

To address this, the government will continue enhancing monitoring and enforcement at petrol stations in collaboration with the Ministry of Domestic Trade and Cost of Living (KPDN) to prevent misuse and smuggling of subsidised fuel.

“The government will not compromise on any form of misappropriation or resale of subsidised petrol to ineligible parties,” the ministry said, adding that strict action would be taken under the Control of Supplies Act 1961.

The MoF also confirmed that further refinements to BUDI95 — including a review of e-hailing fuel entitlements — will be introduced progressively to ensure fairness and inclusivity. - November 1, 2025

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