The government has defended its tiered petrol subsidy under the BUDI95 programme, emphasising that the policy is designed to channel support efficiently while protecting public funds.
Finance Minister II Datuk Seri Amir Hamzah Azizan addressed the rationale during a Dewan Negara session, explaining that the subsidy provides RON95 petrol at RM1.99 per litre for the first 300 litres purchased by Malaysian citizens each month, while fuel usage beyond this threshold is charged at prevailing market rates.
Amir highlighted that the approach moves away from broad, untargeted subsidies that previously allowed all petrol users, including non-citizens, to enjoy the RM2.05 per litre rate. He stressed that untargeted bulk subsidies place unnecessary strain on the nation’s fiscal position and fail to prioritise citizens most in need.
Under BUDI95, eligible Malaysians with valid MyKad identification and active driving licences can purchase up to 300 litres of petrol monthly at the subsidised rate. Beyond the quota, the market rate applies, currently RM2.64 per litre for the week of December 11–17, 2025, as set by the Finance Ministry’s Automatic Pricing Mechanism.
Subsidies for public transport and goods vehicles remain at RM2.05 per litre through the Government Fuel Control System, while commercial users and non-citizens pay market prices.
Citing pre-program data, the ministry noted that 99 percent of Malaysians consume less than 300 litres monthly, meaning the quota covers the majority of personal fuel needs. Since BUDI95’s launch, recipients for personal use have averaged 98 litres per month—just one-third of the allowed quota—indicating that daily travel needs are comfortably met under the RM1.99 per litre rate.
Amir also explained why the government rejected graduated pricing above the quota, such as RM2.10 or RM2.30 per litre. He argued that higher tiered rates would perpetuate inefficient subsidies, increase leakage risks, and offer minimal fiscal relief.
The ministry concluded that the BUDI95 programme will continue to be monitored and adjusted to maintain equity and efficiency. Officials emphasised that the targeted subsidy is intended to safeguard citizens’ daily travel, support fiscal sustainability, and prevent misuse of public funds.
“The implementation of the BUDI95 targeted subsidy policy will be continuously refined for the benefit of the people and the long-term health of the national budget,” the ministry stated.
FlyingBird (aicashflow7@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact creator@newswav.com.
