The Ministry of Domestic Trade and Cost of Living (KPDN) says it is strengthening enforcement of the subsidised RON95 petrol under the BUDI95 initiative. The move is aimed at preventing misuse and fuel leakages nationwide.
KPDN enforcement director-general Azman Adam said the ministry is adopting a more intelligence-led approach to enforcement to ensure that subsidies reach eligible Malaysians without being abused. He noted that rising global oil prices, partly driven by the ongoing tensions in the Middle East, could attract foreign parties attempting to obtain cheaper petrol in Malaysia.
Intelligence-Led Enforcement And Border Monitoring
According to Azman, KPDN will strengthen controls at border entry points and increase monitoring at petrol stations across the country. The ministry currently has around 2,400 enforcement officers who can be mobilised for operations, with their capabilities continuously enhanced through technology and intelligence gathering.
The enforcement push also follows instructions from Prime Minister Anwar Ibrahim, who tasked Deputy Prime Minister Fadillah Yusof and the Ministry of Petroleum and Natural Resources with strengthening monitoring and enforcement against parties attempting to exploit subsidised fuel. KPDN says it has also established strategic cooperation with enforcement agencies including the Royal Malaysia Police and the Royal Malaysian Customs Department for intelligence sharing, integrated operations, and monitoring in high-risk areas to improve enforcement effectiveness.
Azman warned that the ministry will not compromise with anyone involved in subsidy leakages.. Offenders may face investigation, seizure of goods, and prosecution in court if found guilty. He also urged the public to report suspicious activities to authorities so that action can be taken quickly.
Common Examples Of BUDI95 Subsidy Leakage
Based on early implementation reports, authorities have identified several common forms of BUDI95 leakage. These include individuals allowing others to use their MyKad to purchase subsidised petrol, companies instructing employees to refuel company vehicles using personal MyKad cards, and attempts by foreign motorists or foreign-registered vehicles to gain access to the subsidised fuel through fraudulent means.
Local Fuel Prices Rise, But BUDI95 Remain At RM1.99
The increased enforcement comes as Malaysia sees a sharp rise in fuel prices for the week of 12 to 18 March 2026 following a surge in global oil markets linked to escalating tensions in the Middle East. According to the Ministry of Finance (MOF), the retail price of RON97 petrol has increased by 60 sen per litre to RM3.85, up from RM3.25 previously. Unsubsidised RON95 has also risen by the same amount, climbing from RM2.67 to RM3.27 per litre during the same pricing period.
Diesel prices in Peninsular Malaysia have seen the largest increase this week, rising by 80 sen per litre from RM3.12 to RM3.92. However, diesel prices in Sabah, Sarawak, and Labuan remain unchanged at RM2.15 per litre.
Despite the higher fuel prices, the government confirmed that subsidised RON95 under the BUDI95 programme will remain fixed at RM1.99 per litre. Eligible Malaysians with a valid driving licence can purchase the fuel at this rate with a monthly quota of up to 300 litres. This aligns with earlier assurances from Anwar, who said the government would try to keep the subsidised RON95 rate unchanged.
The government has also increased financial assistance for certain diesel users. Recipients under the Budi Diesel Individu and Budi Diesel Agri-Komoditi programmes will receive RM300 in cash assistance for March 2026, up from RM200 previously, with an additional RM100 payment scheduled to begin disbursement on 17 March.
(Source: The Edge Malaysia / Bernama)
