MALAYSIA will tonight begin the nationwide implementation of its targeted fuel subsidy scheme, BUDI MADANI RON95 (BUDI95), with 16 million eligible citizens set to enjoy subsidised petrol at RM1.99 per litre.
The scheme marks a major shift in subsidy delivery—prioritising transparency, fiscal sustainability, and fairness for ordinary Malaysians.
In anticipation of the full implementation, the Ministry of Finance (MoF) has advised all users to ensure that their MyKad and driving licence information are accurately synchronised.
The digital verification process at petrol stations requires matching personal data between the MyKad and driving licence to confirm eligibility.
According to a joint analysis by the Ministry of Finance (MoF) and the Ministry of Transport (MoT), discrepancies remain in some driving licence records, with certain users still registered under outdated formats, such as military, police, or pre-MyKad identity numbers.
To avoid disqualification from the subsidy, users are encouraged to verify that their driving licence includes the correct 12-digit MyKad number, reflects their accurate name, and specifies the appropriate vehicle class.
“This cross-verification is essential because petrol station payment terminals will read the MyKad to confirm the user’s entitlement to subsidised fuel,” said a Ministry spokesperson. “Any inconsistencies must be rectified at the Road Transport Department (JPJ) immediately.”
The BUDI95 initiative has been rolled out in stages since 27 September, beginning with 300,000 personnel from the Malaysian Armed Forces and the Royal Malaysia Police. It was extended on 28 September to cover over five million recipients of the Sumbangan Tunai Rahmah (STR) under the B40 income group.
On its second operational day, nearly half a million STR recipients had successfully made purchases using BUDI95. Transactions totalling RM22.9 million were recorded for 11.5 million litres of RON95 at the subsidised rate of RM1.99 per litre, with the MyKad verification system functioning smoothly across stations.
The BUDI95 portal, launched on 25 September, has already attracted 8.6 million users checking their subsidy eligibility. It now includes a transaction history feature accessible via MyDigital ID login, a secure digital identity platform ensuring privacy and protection of personal data within government systems.
The Prime Minister, Datuk Seri Anwar Ibrahim, had earlier stated that the subsidy, which allows for up to 300 litres per individual each month, is adequate for 98 to 99 percent of Malaysians.
“This initiative ensures that everyday Malaysians commuting to work or transporting their children to school continue to benefit from affordable fuel, while the government achieves substantial savings,” he said.
Under the new scheme, foreign nationals and vehicles with foreign registration are no longer eligible for subsidised fuel, effectively sealing one of the key leakages of the previous blanket subsidy system.
Malaysia’s former bulk subsidy model, which cost the government nearly RM20 billion annually in 2023 and 2024, had allowed more than 20 percent of subsidised petrol to be consumed by non-citizens or commercial sectors not intended to benefit.
“BUDI95 is not just about petrol pricing,” said the Ministry. “It represents a bolder, more targeted, and sustainable approach to subsidy reform—channelling public funds where they are most needed and cutting wasteful expenditure.”
Beyond consumer relief, the subsidy shift is expected to support national economic goals by redirecting savings into education, healthcare, and social development sectors.
For further details, the public may visit the official BUDI95 portal at [www.budimadani.gov.my](http://www.budimadani.gov.my) or contact the helpline at 1-300-88-9595. - September 29, 2025
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