Malaysian Transport Minister Anthony Loke has reassured the public that the Budi Madani RON95 (Budi95) petrol subsidy system will remain unchanged for higher income household. The announcement addresses growing concerns over whether the T20 income group might lose access to subsidised fuel as part of a proposed rationalisation plan.
Loke explained that the government’s goal is to maintain a simple and transparent system that benefits all Malaysians while minimising abuse and leakages. “The principle behind Budi95 has always been to keep it as straightforward as possible. Using just a MyKad, citizens can access fuel subsidies in a controlled and fair manner,” he said.
Transport Minister says no cuts for T20 households amid review of subsidy rationalisation
He also emphasized that there is no plan to cut subsidies for the T20 income group at this time. The Cabinet has deliberated extensively on the issue, with most members agreeing that simplicity and accessibility must remain the top priorities.
The announcement comes amid calls for caution from other political leaders. Umno secretary general Datuk Dr Asyraf Wajdi Dusuki urged the government to consider the real life financial pressures faced by households, even among statistically higher income groups. Similarly, Puchong MP Yeo Bee Yin warned that withdrawing subsidies now could trigger inflation and economic risks for Malaysians.
Prime Minister Datuk Seri Anwar Ibrahim previously said that the subsidy rationalisation proposal is still under review by the Crisis Management Task Force under the National Economic Action Council (NEAC), chaired by Tan Sri Mohd Hassan Marican. Economists have estimated that excluding T20 households could save the government up to RM1.5 billion a month.
On diesel, Loke acknowledged that no subsidy system can cover every user, particularly high-usage groups like tow truck operators. Still, he reassured that most essential industries and commercial vehicles transporting key goods continue to benefit from the current subsidy system, ensuring that supply has remained stable nationwide.
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