Starting 30 September 2025, Malaysians will be able to purchase RON95 petrol at RM1.99 per litre under the government’s newly introduced BUDI95 initiative.
Photo via Paul Tan's Automotive News
The announcement was made on 22 September by Prime Minister Datuk Seri Anwar Ibrahim, who said the subsidy would apply to every Malaysian with a valid driving licence, regardless of income. He explained that the move is meant to ensure subsidies are directed solely to Malaysians while allowing the government to redirect funds to other national priorities.
For foreigners living and working in Malaysia who drive Malaysian-registered vehicles, petrol will be sold at an unsubsidised rate of around RM2.60 per litre.
Each driver will be entitled to up to 300 litres per month. However, e-hailing drivers may apply for higher limits as they are exempted from the cap. Based on data from the Department of Statistics, more than 99 percent of private drivers use less than 300 litres monthly, meaning most will not be affected by the restriction.
Malaysians do not need to register to qualify for the subsidy. Verification can be done at the pump or counter by using a MyKad. Digital verification will also be available through Touch ‘n Go eWallet and fuel apps such as Setel and CaltexGO.
The Ministry of Finance has advised drivers to check that their MyKad chip is working and that their driving licence is valid before the new system takes effect. Those already using their MyKad successfully for government assistance programmes such as SARA need not worry about renewing immediately.
BERSAMA MALAYSIAKU 🇲🇾 ⛽ SUBSIDI PETROL RON95! 🇲🇾 * Harga RON95 diturunkan kepada RM1.99 seliter * Penyasaran subsidi...
Posted by Jabatan Penerangan Malaysia on Monday 18 August 2025
The implementation will be carried out in phases to prevent congestion in the system.
