KUALA LUMPUR, Sept 29 — From midnight, 16 million Malaysians will benefit from the Budi Madani RON95 (BUDI95) initiative, which sets the price of RON95 at RM1.99 per litre.
Each citizen is allowed to buy 300 litres of RON95 per month at the lower price, instead of the current blanket subsidy rate of RM2.05 per litre.
BUDI95 has been implemented in stages since September 27, with 300,000 members of the Malaysian Armed Forces (MAF) and the Royal Malaysia Police (PDRM) being the first to enjoy the initiative, before it was expanded to more than five million Sumbangan Tunai Rahmah (STR) recipients in the B40 category.
Within a day of its implementation, the initiative saw RON95 purchases totalling RM3.7 million, reflecting a positive response from eligible groups such as military and police personnel and STR recipients.
The full rollout of the initiative at midnight tonight marks a historic step, not only in directly benefiting millions of Malaysians, but also in introducing a more targeted and transparent approach aimed at curbing leakages.
Prime Minister Datuk Seri Anwar Ibrahim previously stressed that 300 litres per month would be sufficient for up to 99 per cent of Malaysians, based on current consumption data.
This measure ensures Malaysians commuting to work or sending their children to school continue to enjoy affordable prices, while allowing the government to save significantly on subsidy expenditure.
BUDI95 also helps prevent misappropriation, as non-citizens and foreign-registered vehicles will have to buy RON95 at market price.
Blanket subsidies are no longer viable, as they involved about RM20 billion in annual government expenditure in 2023 and 2024, and caused more than 20 per cent of petrol to go to ineligible parties, including foreigners and the business sector.
BUDI95 offers a simple transaction process, requiring only a MyKad and a valid driving licence for automatic eligibility verification.
Each time they refuel, customers need only scan their MyKad or use a selected e-wallet app.
In addition to benefiting the people, BUDI95 is expected to positively impact the national economy, ensuring a balance between citizens’ welfare and fiscal stability.
By saving on subsidies, the government is able to allocate more funds to the education, health, and social development sectors.
A bold initiative, BUDI95 is not just about fuel prices, but represents the transformation of subsidy management into a more efficient, fair and sustainable mechanism, and most importantly, benefiting the people of Malaysia.
For details, refer to the frequently asked questions on the BUDI95 portal or call the helpline at 1-300-88-9595.
