Malaysians will soon enjoy RON95 petrol at a subsidised price of RM1.99 per litre beginning 30 September 2025 under the new BUDI Madani RON95 (BUDI95) scheme, Prime Minister Datuk Seri Anwar Ibrahim announced today.
The Ministry of Finance (MOF) said the initiative marks a transition to a targeted subsidy system for RON95. Compared to the current pump price of RM2.05 per litre, citizens will pay a reduced RM1.99 per litre. Non-citizens will be charged the unsubsidised rate, estimated at around RM2.60 per litre, while RON97 remains above RM3.
“All citizens, regardless of income, with an active driving licence will automatically qualify for BUDI95. This is a privilege exclusively for Malaysians,” said Anwar, who is also the Finance Minister, during the monthly gathering with staff of the Prime Minister’s Department.
The scheme provides each eligible driver with a quota of up to 300 litres of subsidised RON95 per month, based on Department of Statistics Malaysia studies showing that over 99% of private vehicle owners do not exceed this limit. E-hailing drivers will be exempted from the cap and may apply for higher allocations.
Officials confirmed that foreign-registered vehicles remain prohibited from purchasing RON95, even under the new two-tier pricing. Only Malaysians with a MyKad and valid driving licence will qualify for the subsidised rate, while foreigners working in Malaysia may purchase RON95 only at the unsubsidised pump price.
The government will channel savings from the targeted subsidy shift into programmes such as the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), alongside improvements in healthcare, education and basic infrastructure.
To ease implementation, no registration is required. Purchases will require MyKad verification at petrol pumps or terminals, with additional options through e-wallets and oil company apps such as Setel and CaltexGo.
BUDI95 will be rolled out in phases:
- September 27: Early access for 300,000 armed forces and police personnel
- September 28: Early access for STR recipients from the B40 group
- September 30: Full rollout to 16 million Malaysians aged 16 and above with a MyKad and valid driving licence
The MOF advised citizens to ensure their MyKad chip and driving licence are valid before the transition. Further updates will be announced through official MOF channels.
