After just a month in motion, Malaysia’s new BUDI95 fuel subsidy programme is already showing strong results.
Prime Minister Datuk Seri Anwar Ibrahim told Parliament on 4 November that the initiative has been well-received, with the majority of users consuming far less than their allotted quota. On average, users utilised only 98 litres of subsidised fuel each month, roughly one-third of the 300-litre limit.
Photo via Malay Mail
Only a small group, about 0.7%, went beyond the limit, mostly those who travel long distances for work. To date, 13.1 million Malaysians have benefited from the programme, with a total of RM2.6 billion worth of subsidised BUDI95 fuel distributed. The government’s overall contribution towards fuel subsidies so far stands at RM800 million.
Anwar also praised the smooth rollout of the RON95 subsidy system, highlighting the rise in digital adoption. More Malaysians are now using platforms like Setel and Touch ‘n Go eWallet to manage their subsidies conveniently.
The programme has also been extended to fishermen without driving licences, through collaboration with the Malaysian Fisheries Development Authority and the governments of Sabah and Sarawak. As of 31 October, about 24,000 boat owners have been approved for the subsidy.
In another positive move, the monthly fuel quota for e-hailing drivers has been doubled from 300 litres to 600 litres, benefiting 58,000 drivers nationwide.
BUDI95 is a targeted fuel subsidy programme introduced by the Malaysian government to help lower- and middle-income citizens manage the rising cost of living. It offers up to 300 litres of subsidised RON95 petrol per month for eligible users, with digital applications ensuring smoother, fairer distribution.
