Gov’t considering reducing Budi95 quota to 150L, 60% of Malaysians use less RON95 than that – deputy FM

Faced with high oil prices and an increasingly heavy fuel subsidy burden, the Malaysian government is considering a further reduction of the monthly quota for subsidised RON 95 petrol under the Budi Madani RON 95 programme.

UPDATE: Deputy finance minister Liew Chin Tong said his speech was taken out of context and has released an official statement on the matter.

Budi95 started off with 300 litres a month for all Malaysians last year, before the quota was reduced to 200 litres per month in March. Now, we could potentially see a monthly cap of 150 litres as part of broader government efforts to better manage fuel supply, improve subsidy efficiency and reduce leakage.

Deputy finance minister Liew Chin Tong said the proposed adjustment is based on consumption data, which shows that a majority of Malaysians use significantly less than the current subsidised threshold, New Straits Times reported.

“The data consistently show that 80% of Malaysians use less than 200 litres. The next step is 150 litres [as] 60% of the population uses less than 150 litres,” he said at the Affin Market Outlook 2026: Propelling Malaysia Forward event in KL today.

On March 26, prime minister Datuk Seri Anwar Ibrahim announced the temporary reduction of Budi95 quota to 200 litres a month effective April 1, at the same subsidised rate of RM1.99 per litre. Anwar, who is also finance minister, said that 90% of RON 95 petrol users will not be affected by the reduced quota.

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