Effective midnight tonight, 16 million Malaysians will benefit from the Budi MADANI RON95 (BUDI95) initiative, which sets the price of RON95 petrol at RM1.99 per litre. Each citizen is eligible for 300 litres per month, below the previous blanket subsidy rate of RM2.05 per litre.
BUDI95 has been rolled out in stages since September 27, initially covering 300,000 Malaysian Armed Forces and Royal Malaysia Police personnel, before expanding to over five million Sumbangan Tunai Rahmah (STR) recipients in the B40 category. Within the first day of the initiative, RON95 purchases totalled RM3.7 million, signalling strong uptake among early beneficiaries.
Prime Minister Datuk Seri Anwar Ibrahim said 300 litres per month would cover 98 to 99% of Malaysians’ needs, ensuring commuters and families continue to enjoy affordable fuel while reducing government subsidy spending. Non-citizens and foreign-registered vehicles must pay market rates, addressing leakages under previous blanket subsidy schemes, which cost about RM20 billion annually and saw over 20% of petrol consumed by ineligible users.
BUDI95 streamlines transactions through automatic verification using MyKad and a valid driving licence, with refuelling processed via MyKad scan or selected digital wallet apps. The initiative is designed to support citizens while maintaining fiscal stability, enabling the government to redirect savings to education, healthcare and social development.
