KUALA LUMPUR — The government has rejected the floating price approach recommended by the World Bank and economic experts, saying it would be burdensome for most Malaysians, Prime Minister Datuk Seri Anwar Ibrahim said.
Instead, the government implemented targeted subsidies that protected 85 per cent of the population and saved RM6 billion on petrol and RM5 billion on diesel. The price of Budi95 was fixed at RM1.99 per litre to ensure fuel consumption benefits the public.
“The use of Budi95 is smooth and orderly. This is a success story that we are proud of. A total of 3.1 million transactions a day were carried out well,” Anwar said during Minister’s Question Time in the Dewan Rakyat today.
“Current use is around 100 litres, although we provide up to 300 litres, and 90 per cent of people using Budi95 do not exceed 200 litres a month,” he added, responding to questions on savings achieved in 2025, projected savings for 2026, and how the savings were used.
Anwar said that few countries dare to implement targeted subsidies given the risks and challenges, but Malaysia’s approach has been well received. “Alhamdulillah, the move was successfully implemented. Untargeted subsidies would have caused too much leakage,” he said.
He added that floating prices would have only exempted families earning RM13,000 a month and above from assistance, while the rest would still receive aid.
The prime minister also noted that smuggling syndicates to neighbouring countries have been successfully curbed. “This attitude is commendable — not only defending the rights of Malaysians, but also reflecting the spirit of nationhood and identity,” he said.
The targeted RON95 subsidy is expected to save at least RM2.5 billion this year, subject to global crude oil prices and exchange rates. Anwar said the savings have been redistributed through assistance programmes such as Sumbangan Asas Rahmah (SARA).
He acknowledged some isolated cases of misuse in border areas like Rantau Panjang, Tawau and Perlis. “Surveillance and enforcement are now more focused on these areas to prevent loss of revenue,” he said. — February 11, 2026