A significant shift in Malaysia’s fuel subsidy framework commences tonight, extending targeted RON95 petrol benefits to approximately 16 million citizens. The BUDI95 initiative establishes a fixed price of RM1.99 per liter for eligible individuals, a reduction from the previous bulk-subsidized rate of RM2.05. This program allocates a monthly quota of 300 liters per qualified citizen, marking a pivotal move towards a more efficient and fiscally responsible subsidy system.
The nationwide rollout follows a successful phased implementation that began on September 27th. The initial phase involved 300,000 members of the Malaysian Armed Forces and the Royal Malaysian Police, later expanding to over five million recipients from the B40 category under the Sumbangan Tunai Rahmah (STR) program. The initiative recorded RM3.7 million in RON95 purchases within its first day, indicating strong uptake from these initial beneficiary groups.
This refined subsidy model is designed to be more transparent and less susceptible to leakage. It effectively closes loopholes that previously allowed non-citizens and foreign-registered vehicles to benefit from subsidized fuel, a significant issue under the old bulk subsidy system. Prime Minister Datuk Seri Anwar Ibrahim has emphasized that the 300-liter monthly allocation is sufficient for 98 to 99 percent of Malaysians based on current consumption data, ensuring affordability for daily commutes and essential travel.
For users, the process is streamlined, requiring only a valid MyKad and driver’s license for automatic eligibility verification at petrol stations. Transactions are completed by scanning the MyKad or using a preferred digital wallet application. Beyond direct public benefit, BUDI95 is anticipated to positively impact the national economy. The substantial savings—the old system cost nearly RM20 billion annually in 2023 and 2024, with over 20 percent of fuel reportedly diverted to ineligible parties—will allow the government to reallocate funds to critical sectors like education, healthcare, and social development.
Ultimately, BUDI95 represents a bold transformation in subsidy management, prioritizing efficiency, fairness, and long-term sustainability for the nation’s benefit. The public can access further details by consulting the Frequently Asked Questions (FAQ) on the official BUDI95 portal at www.budimadani.gov.my or by contacting the helpline at 1-300-88-9595.