KUALA LUMPUR – Some 16.4 million Malaysians will begin enjoying subsidised RON95 petrol at RM1.99 per litre from midnight, under the newly expanded Bantuan Subsidi Madani (Budi95) programme.
The subsidy scheme, open to all citizens aged 16 and above with a valid MyKad and driving licence, is being rolled out nationwide after its initial trial phase last week.
Deputy Finance Minister Lim Hui Ying said the programme has already recorded strong uptake, with sales of RM22.9 million in a single day, equivalent to 11.5 million litres of RON95 petrol purchased at the subsidised rate.
“The redemption process has been smooth and without disruption. This follows the successful first phase on September 27 involving 300,000 members of the police and armed forces,” Lim told reporters today, reported Bernama.
The second phase opened on September 28 to five million recipients of the Sumbangan Tunai Rahmah (STR) cash aid under the B40 income group, marking a major expansion of the scheme.
Finance Minister II Amir Hamzah Azizan said the programme could save Malaysians up to RM200 per month, while reducing government expenditure by between RM2.5 billion and RM4 billion, depending on global oil prices.
Each Malaysian driver will be entitled to up to 300 litres of subsidised petrol monthly, a limit the finance ministry said was based on national statistics showing 99% of private car users consume less than that amount.
Exceptions will be made for e-hailing drivers, who may apply for higher quotas.
To illustrate the quota’s adequacy, the ministry said 300 litres would be sufficient for a Proton Saga driver commuting 200 kilometres daily from Seremban to Puncak Alam for a month.
For non-citizens, the unsubsidised retail price of RON95 has been fixed at RM2.60 per litre between September 30 and October 8.
Meanwhile, subsidised rates for land public transport and goods transport sectors under the Subsidised Petrol Control System (SKPS) will remain at RM2.05 per litre for the same period.
The government has promoted Budi95 as a more targeted subsidy mechanism aimed at ensuring lower-income households benefit directly, while also addressing fiscal pressures caused by blanket subsidies. — September 29, 2025