The monthly subsidised RON95 quota under the BUDI95 programme could potentially be reduced to 150 litres, as the government looks to better manage fuel supply and subsidy expenditure, reports The Edge. According to Deputy Finance Minister Liew Chin Tong, current consumption data shows that most Malaysians are still using below the existing quota. He said
The monthly subsidised RON95 quota under the BUDI95 programme could potentially be reduced to 150 litres, as the government looks to better manage fuel supply and subsidy expenditure, reports The Edge.
According to Deputy Finance Minister Liew Chin Tong, current consumption data shows that most Malaysians are still using below the existing quota. He said 80% of Malaysians use less than 200 litres a month, while 60% use less than 150 litres.
The current quota was previously reduced from 300 litres to 200 litres in March as part of the government’s fuel subsidy adjustment, while the subsidised RON95 price remains at RM 1.99 per litre for eligible motorists under BUDI95.
For now, no timeline has been given for the potential reduction to 150 litres. The proposal also comes as the government continues to study more targeted fuel subsidy eligibility, including the possible exclusion of higher-income groups and foreigners from the programme.
Prime Minister Datuk Seri Anwar Ibrahim said the government is reviewing whether the subsidy adjustment should apply to the T5, T10, T15 or T20 income groups. The main issue, as before, is where the cut-off should be set without affecting the upper-middle class.
Liew also framed BUDI95 as a demand management tool rather than just a subsidy programme. This is especially relevant as fuel subsidy expenditure has reportedly increased sharply following higher crude oil prices and the escalation of geopolitical tensions in the Middle East.
The government had previously said the country’s fuel supply remained secure, with the 200-litre quota maintained for the time being while global supply developments continued to be monitored.
At the same time, Liew stressed that vulnerable groups, especially motorcyclists and lower-income households, should continue to have access to subsidised fuel. He noted that motorcyclists typically use around 50 litres a month, making continued subsidy access important for this group.
The government is also still working on a targeted diesel subsidy mechanism for Sabah and Sarawak, similar to the BUDI95 structure. Longer term, Liew said Malaysia should accelerate investments in public transport, electrification and more compact urban planning to reduce dependency on oil.
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