The Malaysian government has introduced BUDI95, also known as Budi Madani RON95, a new targeted subsidy scheme for petrol. The programme is designed to make fuel subsidies fairer, more efficient, and focused on helping Malaysians who truly need it. Here’s a simple breakdown of how it works, who qualifies, and what to expect.
What is BUDI95?
BUDI95 is a targeted subsidy programme for RON95 petrol. Under the scheme, eligible Malaysians will enjoy a subsidised rate of RM1.99 per litre for RON95. Those who are not eligible, such as non-citizens or corporate users, will need to pay the market rate, which is estimated to be around RM2.60 per litre.
The main aim is to reduce wastage from blanket subsidies and ensure government funds are channelled to the right groups.
When is it rolling out?
The BUDI95 scheme is being introduced in stages:
- 27 September 2025: Police and armed forces personnel are the first to be included.
- 28 September 2025: Recipients of the Sumbangan Tunai Rahmah (STR) benefit join the programme.
- 30 September 2025 onwards: All eligible Malaysians can access the subsidy.
At petrol stations, the refuelling process will remain the same, with one key addition: customers will need to insert their MyKad for verification before paying. Payment can still be made via cash, card, or e-wallet.
Who qualifies and what are the limits?
To enjoy the subsidised price, you must:
- Be a Malaysian citizen (must have IC).
- Own a valid driving licence (learner, probationary, or full).
- Use a vehicle registered in Malaysia.
Each eligible individual is entitled to a monthly quota of 300 litres of subsidised RON95 petrol. This amount was chosen as it covers the fuel needs of nearly all drivers in the country. If you exceed this quota, any additional purchases will be charged at the unsubsidised market price.
Foreign-registered vehicles are not allowed to buy RON95 at subsidised rates. Malaysians driving foreign-registered vehicles can still purchase RON95, but only at market price.
There is no daily limit on how many times you can refuel, but the government will monitor for abuse to prevent misuse of the system.
How to check eligibility
Drivers can check their eligibility through the official BUDI95 portal or participating petrol company apps. By entering your MyKad number, the system will confirm whether you qualify and display your remaining monthly quota. Once verified, future refuelling at participating stations will automatically reflect your subsidised status.
Why BUDI95 matters
The BUDI95 scheme ensures that fuel subsidies are enjoyed primarily by Malaysian citizens rather than being misused by outsiders. It also allows the government to save funds previously spent on blanket subsidies, which can then be redirected to other social and economic development programmes.
Still, challenges remain. The system must handle millions of transactions smoothly, and those with expired licences or data errors may face temporary issues. Over time, the government is also expected to refine eligibility criteria, possibly phasing out higher-income groups from receiving the subsidy.
Conclusion
In short, BUDI95 marks an important shift in how Malaysia manages petrol subsidies. If you are a Malaysian citizen with a valid driving licence, you can enjoy RON95 at RM1.99 per litre up to your 300-litre monthly quota. All you need to do is check your status online, use your MyKad when paying, and refuel as usual.
While the government says that this new system is a step toward making subsidies smarter, fairer, and more sustainable for the nation, is it making life easier for us? Let us know what you think!
