The quota for subsidised RON95 petrol under BUDI95 will be reduced to 200 litres per month starting 1 April, down from the previous 300 litres, as Putrajaya moves to manage rising global fuel costs while keeping prices affordable for Malaysians.
Prime Minister Datuk Seri Anwar Ibrahim confirmed that despite increasing global oil prices, the subsidised price under BUDI95 will remain at RM1.99 per litre. While many neighbouring countries have already raised fuel prices, Malaysia has chosen to hold its ground to ease the burden on the rakyat.
“All countries, especially neighbouring countries, increased the price of oil, but Malaysia decided to maintain the price of Budi95 oil at RM1.99. We know that this has provided many benefits to the people and we also had to take some additional steps,” he said.
He explained that the decision was guided by actual usage data.
“We examined whether the use of Budi95 is sufficient. We found that the average use of Budi95 is around 100 litres,” he added, noting that most Malaysians fall well below the new limit.
Anwar emphasised that the adjustment is temporary, as the government continues to monitor global oil prices, supply conditions, and the broader economic outlook.
Adjustment Driven By Global Oil Pressure
This latest BUDI95 revision comes as global oil markets remain under pressure due to the ongoing conflict in West Asia.
When tensions rise in major oil-producing regions, prices tend to react quickly. Even the risk of disruption, especially along key routes like the Strait of Hormuz, can push global oil prices higher.
Earlier this month, Brent crude surged close to USD120 per barrel, compared to around USD70 before the conflict began. Although prices have eased slightly to around USD90 to USD100, they remain significantly higher than previous levels.
For Malaysia, this creates a direct financial impact. Since fuel prices are subsidised, the government absorbs the difference between global market prices and the fixed domestic price. As a result, rising oil prices translate directly into higher subsidy costs.
The government has warned that fuel subsidies could reach RM24 billion this year if oil prices remain elevated. Instead of raising prices across the board, the BUDI95 structure is being adjusted to manage this growing cost.
What The BUDI95 200 Litre Limit Means For You
Under the revised BUDI95 structure, motorists can purchase up to 200 litres of RON95 at RM1.99, equivalent to about RM398 worth of subsidised fuel each month.
If your monthly usage stays within this limit, your fuel spending remains unchanged. For many Malaysians, daily routines and expenses will continue as usual.
However, once you exceed 200 litres, the pricing changes immediately. Every additional litre is charged at the unsubsidised rate, currently around RM3.87 per litre, which is significantly higher.
For those with higher fuel usage, the difference can be substantial.
If you previously consumed around 300 litres per month, your total cost would have been about RM597 under the full subsidy. With the updated BUDI95 quota, the first 200 litres cost RM398, while the remaining 100 litres add about RM387 at the higher rate.
This brings your total monthly fuel bill to around RM785, an increase of approximately RM188 per month, even if your driving habits remain unchanged.
Who Will Actually Feel The Impact
Based on current data, about 90% of Malaysians use less than 200 litres per month, which means the majority will not be directly affected by the BUDI95 change.
For these users, fuel costs remain exactly the same, and the adjustment may go largely unnoticed.
However, for those who drive longer distances, commute frequently, or rely heavily on their vehicles, this change introduces a new cost dynamic. Fuel spending becomes more sensitive to usage, rather than just price.
E hailing drivers, meanwhile, will continue to receive a higher quota of up to 800 litres per month, reflecting a policy approach that prioritises fuel used for income generation.
A Gradual Shift Beyond BUDI95
This move signals a broader shift in how subsidies are being managed in Malaysia.
Instead of a blanket system, subsidies are becoming more targeted and usage-based, where support is maintained but capped at a certain level. Beyond that level, consumers begin to experience market pricing.
For most Malaysians, daily routines will remain unchanged.
But for others, especially those with higher fuel usage, this introduces a new layer of awareness. Fuel costs are no longer just about the price per litre, but also about how much of that price you are able to access each month.
So, what do you think about this BUDI95 quota change?
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