KUALA LUMPUR — The phased rollout of the Budi Madani RON95 (Budi95) fuel subsidy scheme aims to avoid the system glitches and long queues that marred the launch of the Sumbangan Asas Rahmah (SARA) programme last month.
Treasury secretary-general Datuk Johan Mahmood Merican said the government had learnt from SARA’s August 31 debut, when thousands of Malaysians tried to access the system simultaneously.
“The three-phase rollout was introduced following lessons learnt from the SARA implementation, when many Malaysians tested the system on the first day. For BUDI95, the government opted for a gradual implementation,” Johan told reporters during a visit to a petrol station in Taman Tun Dr Ismail today, reported Bernama.
The subsidy, which caps RON95 petrol at RM1.99 per litre, came into effect at midnight for some 300,000 military and police personnel — the first group to benefit from the scheme.
They will be followed by Sumbangan Tunai Rahmah (STR) recipients in the B40 income group on September 28, before nationwide expansion on September 30 to all Malaysians aged 16 and above with a MyKad and valid driving licence.
Johan said the first day of implementation had gone smoothly. “This morning, I visited a petrol station at Kem Perdana Sungai Besi and found that the transactions there were running well,” he said.
The scheme includes a 300-litre monthly cap per individual, which Johan argued was more than enough for private use.
“Data shows that 90 per cent of Malaysians consume around 180 litres of petrol a month, except for those in the e-hailing sector. So, the 300-litre limit under BUDI95 is more than adequate,” he said.
He added that the government had inspected more than 4,000 petrol stations nationwide — including in rural areas — to ensure telecommunication coverage for subsidy-linked transactions.
“However, in unforeseen circumstances, a standard operating procedure has been established between the government and oil companies. The public will still be able to pay the subsidised price without the system,” he said.
Prime Minister Datuk Seri Anwar Ibrahim announced the subsidy on September 22 as part of the government’s wider Budi Madani framework, aimed at easing the cost of living while maintaining fiscal reforms. — September 27, 2025