KUALA LUMPUR — The majority of Malaysians will not be impacted by the government’s decision to adjust the Budi95 subsidised petrol quota from 300 litres to 200 litres per month, Home Minister Datuk Seri Saifuddin Nasution Ismail said.
The move, effective April 1, will not affect the daily lives of nearly 90% of the public, as data indicates that nine out of 10 Malaysians use an average of only 100 litres of petrol monthly.
“The good news is that the majority of the people are not affected at all by this change. The daily lives of the vast majority will proceed as usual without any additional costs,” Saifuddin said on Facebook.
For the 10% who consume more than 200 litres a month, he urged a shift toward more sustainable habits, such as carpooling and utilising public transportation.
Saifuddin said the quota reduction was a temporary step in view of conflict in the Middle East over Iran, until global market conditions stabilise.
The move was announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday.
The adjustment is a strategic move to manage the national fuel subsidy, which has surged sixfold from RM700 million to RM4 billion per month following global crude oil prices exceeding US$100 per barrel.
“We cannot allow RM4 billion of the public’s money to be ‘burned’ on the road every month. These subsidy savings are urgently needed to build more schools, upgrade hospitals, and provide cash assistance to those in need,” Saifuddin said.
The government continues to “shield” citizens by maintaining the subsidised RON95 price at RM1.99 per litre, he added.
Malaysia’s petrol remains among the cheapest globally, Saifuddin said, in comparison with prices Singapore and Hong Kong which range from RM10 to RM14 per litre.
To protect the livelihoods of transport workers, the government will maintain the existing 800-litre monthly quota for e-hailing drivers. – March 27, 2026