It’s official: the government is reducing the monthly quota for the BUDI95 subsidy from 300 litres to 200 litres. Prime Minister Datuk Seri Anwar Ibrahim confirmed that this change will take effect starting 1 April 2026. He also noted that the price of subsidised petrol will remain at RM1.99 per litre.
Furthermore, the Prime Minister explained that this decision will not affect the majority of consumers. Previously, the government found that 90% of the people use less than 200 litres, with the average consumption amounting to about 83 litres.
Unsurprisingly, the tightening of the BUDI95 subsidies is due to the skyrocketing crude oil prices. Anwar clarified that this is a temporary measure while global oil supply and economic conditions recover, although there are no clear signs of improvement thus far.
That said, while the quota has been reduced for regular citizens, the fuel cap for e-hailing drivers and gig workers remains unchanged at 800 litres a month. This is due to the nature of their work and operational needs. Similarly, Sabah and Sarawak will continue to enjoy subsidised diesel at RM2.15 per litre due to the geographical and logistical constraints in the region.
However, limits on fuel purchases will be imposed to ensure sufficient and fair distribution. Moreover, Anwar announced that the government will tighten controls and enforcement to curb leakages.
(Source: Anwar Ibrahim via Facebook)
