Malaysia will maintain the current monthly subsidised fuel quota of 200 litres under the Budi Madani RON95 (Budi95) programme for now, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the government would only consider revising the quota if Brent crude prices — the global oil benchmark — rise sharply to between US$200 and US$300 per barrel. At the time of writing, Brent crude was trading at US$92.38 per barrel.
“We reduced the quota from 300 litres to 200 litres, and I think that has helped. If prices were to reach US$200 to US$300 per barrel, then we would have to look again at that time,” he said at the Invest Malaysia conference on Tuesday.
“As long as the government has the ability to manage the situation, we will continue to mitigate the impact on society,” he added.
On fuel supply, Amir Hamzah said the government has been securing supplies on a rolling basis and intends to continue doing so.
“We have been able to secure supply for up to three months ahead and will continue to do so. What we cannot guarantee is that prices will remain stable, as they must ultimately reflect global market conditions over the longer term,” he said.
The Budi95 monthly quota was reduced from 300 litres to 200 litres effective April 1, as Malaysia’s fuel subsidy bill rose to about RM7 billion per month amid global supply disruptions linked to geopolitical tensions and instability around the Strait of Hormuz — a key route for global oil and gas shipments.
The Budi95 programme allows eligible Malaysians to purchase RON95 petrol at a subsidised rate of RM1.99 per litre.
Malaysia, along with many countries, continues to face pressure from volatility in global energy markets due to ongoing geopolitical conflicts that have disrupted shipping routes and pushed crude oil prices above US$100 per barrel at times.
Against this backdrop, Petroliam Nasional Bhd (PETRONAS), which supplies about half of Malaysia’s fuel through its listed subsidiary PETRONAS Dagangan Bhd, has reiterated its commitment to ensuring supply security through end-July, according to earlier remarks by Economy Minister Akmal Nasrullah Mohd Nasir.
