Malaysia

BUDI95 fuel subsidy shields majority of Malaysians, PM confirms

Approximately 90 per cent of Malaysian households consume less than two-thirds of their monthly 300-litre BUDI95 petrol allowance, with average usage at 100 litres, Anwar reveals in Parliament

Updated 5 months ago · Published on 11 Feb 2026 12:34PM

BUDI95 fuel subsidy shields majority of Malaysians, PM confirms
Average usage currently stands at around 100 litres, with BUDI95 recording up to 3.1 million daily transactions, or roughly 96 million per month - February 11, 2026

MALAYSIA’S targeted fuel subsidy programme, BUDI95, continues to protect the bulk of the population from rising petrol costs, Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat on Wednesday.

Anwar, who also serves as Finance Minister, said data indicates that 90 per cent of citizens consume less than 200 litres per month under the 300-litre monthly allowance for RON95 petrol.

Average usage currently stands at around 100 litres, with BUDI95 recording up to 3.1 million daily transactions, or roughly 96 million per month, demonstrating smooth and orderly operations.

“BUDI95 is a success story that makes us proud. The 300-litre cap per person is sufficient for ordinary use, and 90 per cent of users do not exceed 200 litres monthly,” he said in response to a parliamentary question from Fong Kui Lun (PH-Bukit Bintang) regarding the scheme’s savings for 2025 and projections for 2026.

Under the scheme, Malaysian citizens aged 16 and above with valid driving licences may purchase RON95 petrol at RM1.99 per litre, compared with RM2.60 per litre without subsidy.

Anwar highlighted that the government deliberately chose a phased, targeted subsidy model rather than following recommendations from the World Bank and other economists to liberalise petrol prices, noting that floating prices could have caused inflation to spike and burdened households across income levels.

“This approach has successfully shielded 85 per cent of Malaysians, generating savings of RM6 billion on petrol and RM5 billion on diesel,” he said.

“Few countries dare to implement targeted subsidies given the risks and the challenge of public acceptance. Alhamdulillah, the programme has been successfully implemented and well received.”

The Prime Minister emphasised that targeted subsidies allow the government to limit fiscal leakage from untargeted support while ensuring ordinary Malaysians continue to benefit from affordable fuel.

 “Had prices been fully liberalised, only households earning above RM13,000 a month would have been left without assistance, with support provided to all others,” he added.

Anwar described the policy as a demonstration of balance between fiscal prudence and social responsibility, ensuring that savings from the subsidy scheme are effectively redirected to support Malaysians while maintaining access to essential energy resources. - February 11, 2026

Spotlight

Malaysia

After Johor, the uncomfortable question for Anwar’s critics: Were we too impatient?

By The Vibes Says

Malaysia

Network School's business licences revoked, to cease operations tomorrow

Opinion

Orang Asli in Pahang: Token gestures or genuine recognition?

Malaysia

Tuition teacher sentenced to 105 years in prison and 70 lashes for raping daughter

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Aminuddin urges NS voters to weigh manifesto promising benefits for M40 and B40 groups

Malaysia

No need to resign, PM has absolute power if there is doubt – Ahmad Zahid

World

Gaza’s water crisis deepens as families face thirst, disease and collapsing sanitation systems

You may be interested

Malaysia

BN-PN alliance could secure 25 seats in Negeri Sembilan - Ahmad Maslan

Malaysia

PH offers more comprehensive manifesto, benefits all groups

Malaysia

PH banks on Negeri Sembilan development record as campaign heats up

Malaysia

AGC orders inquest into deaths of three men in Durian Tunggal police shooting

Malaysia

Who is Sarah? What we know about the Malaysian lawyer at the centre of the Karim Khan case

Malaysia

PRN Negeri Sembilan: BN + PN = PBN, says Hamzah

Malaysia

AirBorneo an important ‘air bridge’ between Sarawak, Peninsular Malaysia – Abang Jo

Malaysia

Zahid denies BN-PN-GPS-GRS meeting rumours, reaffirms Unity Government commitment