Malaysia

BUDI95: Subsidy savings could reach RM4 billion a year

This subsidy scheme not only provides direct benefits to the people, but can also curb the abuse that previously occurred.

Updated 11 months ago · Published on 22 Sep 2025 2:40PM

BUDI95: Subsidy savings could reach RM4 billion a year
If the world oil price is around US$75 per barrel, subsidy savings could reach between RM2.5 billion and RM4 billion per year - September 22, 2025

THE government expects to save between RM2.5 billion and RM4 billion a year through the implementation of the new petrol subsidy scheme that uses MyKad to verify the eligibility of Malaysians.

Finance Minister II, Datuk Seri Amir Hamzah Azizan said that this scheme aims to ensure that subsidised petrol is only distributed to eligible citizens in addition to preventing leakage or misuse, including sales to foreigners.

“This subsidy scheme not only provides direct benefits to the people, but can also curb the abuse that previously occurred.

“After the implementation of this petrol subsidy, the amount of savings depends on the world crude oil price determined in the international market.

"If the world oil price is around US$75 per barrel, subsidy savings could reach between RM2.5 billion and RM4 billion per year," he said in Penang.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that the price of RON95 petrol would be reduced from RM2.05 to RM1.99 per litre starting September 30 under the Budi Madani RON95 (BUDI95) programme.

According to him, the move only involved Malaysians, while non-citizens would have to pay at the rate of RM2.60 per litre after that date. - September 22, 2025

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