Malaysia’s targeted RON95 subsidy scheme is estimated to save the Government between RM2.5 billion and RM4 billion annually, depending on global crude oil prices, exchange rates and actual fuel consumption, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
Speaking in the Dewan Negara, Amir Hamzah said the savings came from preventing subsidies from being enjoyed by those who are not eligible, including non-citizens and commercial users, under the BUDI MADANI RON95 (BUDI95) programme.
As of July 31, more than 14.2 million Malaysians out of over 16.7 million eligible individuals had benefited from subsidised RON95 at RM1.99 per litre, with consumption exceeding 13.4 billion litres.
The government currently provides eligible Malaysians with up to 200 litres of subsidised RON95 each month through verification using MyKad and driving licence data linked to a central database. Amir Hamzah said actual usage data from October 2025 to June 2026 showed less than 1% of BUDI95 users consistently consumed more than 200 litres a month, while average monthly consumption was around 100 litres.
He said the savings were being channelled back into targeted assistance rather than simply retained as fiscal surplus, including RM15 billion for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, RM3.1 billion for welfare aid and RM1 billion for cost-of-living measures.
The government will continue monitoring BUDI95 based on actual consumption, global energy prices, the country’s fiscal position and public feedback, he added.
