PUTRAJAYA, The MADANI government will allocate about RM11 billion under the BUDI MADANI RON95 (BUDI95) fuel subsidy scheme to cover the gap between the subsidised price of RM1.99 per litre and the market price of around RM2.60 per litre.
According to the Ministry of Finance (MOF), removing blanket subsidies is expected to generate annual savings of RM2.5 billion to RM4 billion. These savings will be redirected towards targeted aid programmes such as the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA).
BUDI95, a targeted RON95 subsidy for Malaysian citizens, has been designed to be simple, fair and beneficial to recipients. All citizens aged 16 and above with a valid driving licence will automatically be eligible for up to 300 litres of subsidised RON95 per month.
MOF said the 300-litre monthly cap was set based on Department of Statistics Malaysia (DOSM) data, which shows 99% of private vehicle drivers consume less than this amount. “This quota is sufficient, for example, to cover a worker commuting 200km daily between Seremban and Puncak Alam in a Proton Saga,” the ministry added. The relatively high cap also serves as a safeguard against misuse, such as cross-border smuggling or large-scale commercial abuse.
To help users check eligibility and balances, the government will launch the portal www.budimadani.gov.my at 9 a.m. on Thursday (Sept 25). E-hailing drivers can also apply for additional quota through the portal. A helpline (1300-88-9595) will also be available from the same day.
Prime Minister Datuk Seri Anwar Ibrahim announced yesterday that the RON95 pump price will be reduced from RM2.05 to RM1.99 per litre effective Sept 30 through the targeted subsidy. He added that over 16 million Malaysians are expected to qualify for the scheme, based on Road Transport Department (JPJ) and National Registration Department (JPN) records.
Meanwhile, MOF clarified in a separate statement that the government has no plans to limit RON95 purchases. “Although measures are being studied to curb subsidy misuse, BUDI95 was introduced to meet Malaysians’ daily fuel needs. A one-purchase-per-day restriction would not align with this objective,” it said.
