A significant shift in Malaysia’s fuel subsidy framework is now in effect, with the nationwide implementation of the BUDI95 initiative commencing at midnight. This program extends subsidized RON95 petrol at RM1.99 per liter to an estimated 16 million eligible citizens, marking a pivotal change from the previous universal subsidy model. The new price undercuts the former bulk subsidy rate of RM2.05 per liter, providing direct financial relief to a vast segment of the population.
The initiative was first introduced in a phased manner, initially benefiting 300,000 members of the Malaysian Armed Forces and the Royal Malaysia Police. It was subsequently expanded to include over five million recipients from the B40 category under the Sumbangan Tunai Rahmah (STR) program. The initial response has been highly encouraging, with transactions totaling RM3.7 million recorded on the very first day of its limited rollout, demonstrating strong uptake from the targeted groups.
A key feature of BUDI95 is its targeted and transparent mechanism, designed to prevent the subsidy leaks that plagued the old system. Under the previous bulk subsidy, which cost the nation approximately RM20 billion annually in 2023 and 2024, over 20 percent of subsidized fuel was estimated to have been diverted to ineligible parties, including foreigners and commercial sectors. The new program curbs this by restricting the subsidized price to citizens, requiring non-citizens and foreign-registered vehicles to pay the full market rate.
For consumers, the process is streamlined and user-friendly. Eligibility is verified automatically at petrol stations using a valid MyKad and driver’s license. At the point of sale, individuals simply need to scan their MyKad or use their preferred digital wallet application. The government has allocated a monthly quota of 300 liters per person, a volume deemed sufficient for 98 to 99 percent of Malaysians based on current consumption data, covering the needs of daily commuters and families.
Ultimately, BUDI95 represents a bold reform that balances public welfare with fiscal responsibility. By generating substantial savings on subsidy expenditure, the government can reallocate funds to other critical sectors such as education, healthcare, and social development. This initiative transcends mere petrol pricing, symbolizing a broader transformation towards a more efficient, equitable, and sustainable subsidy management system that directly benefits the people of Malaysia. For further information, the public can refer to the official BUDI95 portal or contact the dedicated helpline.