Malaysia Government Considers Cutting Budi95 RON95 Quota to 150 Litres Amid Rising Fuel Subsidy Costs

Kuala Lumpur, 13 May 2026 – The Malaysian government is exploring a further reduction in the monthly subsidised RON95 petrol quota under the Budi Madani (Budi95) programme, potentially lowering it from the current 200 litres to just 150 litres per vehicle.

This move comes as high global oil prices continue to strain the country’s fuel subsidy bill. Deputy Finance Minister Liew Chin Tong highlighted consumption data showing that most Malaysians use well below the existing limit, making the adjustment a viable option for better subsidy targeting and fuel conservation.

Key Data Driving the Proposal

According to Liew, official figures reveal:

• 80% of Malaysians use less than 200 litres of RON95 per month.
• 60% of the population consume less than 150 litres monthly.

He described the Budi95 programme not only as a subsidy scheme but also as a “demand management tool” to help preserve domestic fuel supply.

Background of Budi95 Quota Changes

• Launched with a 300-litre monthly quota in 2025.
• Reduced to 200 litres effective April 2026, following announcements by Prime Minister Datuk Seri Anwar Ibrahim.
• The subsidised price remains at RM1.99 per litre for eligible purchases.

The proposed 150-litre cap would further tighten access while aiming to minimise impact on ordinary motorists, as the majority already stay under this threshold.

Important Clarification

Update: Deputy Finance Minister Liew Chin Tong later clarified that his remarks were taken out of context. He stated that the 150-litre quota is not an official government announcement or confirmed future policy.

Why This Matters for Malaysians

With fuel subsidies forming a significant portion of government expenditure, further refinements to Budi95 aim to reduce leakage, improve fiscal sustainability, and ensure subsidies benefit those who need them most. This aligns with ongoing efforts toward more targeted subsidies using systems like PADU.

Many motorists who drive efficiently or use their vehicles mainly for commuting may not feel the pinch, but heavier users could face higher costs once they exceed the quota and switch to market-rate petrol.

The government has not yet confirmed any implementation timeline for the potential 150-litre limit. Further details are expected in the coming weeks as discussions continue.