.png)
Malaysia’s monthly subsidised RON95 fuel quota under the BUDI95 programme could be reduced further to 150 litres per month as the government moves to safeguard domestic fuel supplies amid escalating global geopolitical tensions.
Deputy Finance Minister Liew Chin Tong revealed that the potential reduction is being considered following consumption data showing that most Malaysians use significantly less fuel than the current quota allowance.
The current BUDI95 quota stands at 200 litres monthly, already reduced from the previous 300-litre limit.
Speaking during the “Malaysia’s Response to Global Energy Crisis: Build Back Better” fireside chat at the AFFIN Market Outlook Conference 2026, Liew said the government now has access to detailed fuel consumption data through the BUDI95 system, enabling more targeted subsidy management and flexible supply control measures.
“The next step is 150 litres. Around 60 percent of the population uses less than 150 litres, while 50 percent consume below 100 litres monthly,” he said.
According to Liew, approximately 80 percent of Malaysians currently consume less than 200 litres of petrol per month, suggesting that any further reduction would have minimal impact on the majority of consumers.
Fuel Security Now a National Priority
The government’s growing concern stems from rising global energy instability triggered by ongoing conflicts in the Middle East and wider geopolitical uncertainty.
Malaysia’s monthly fuel subsidy expenditure reportedly surged nearly tenfold after crude oil prices spiked due to escalating regional tensions earlier this year.
Liew stressed that the primary objective is no longer solely fiscal savings, but ensuring long-term fuel availability for Malaysians should global supply disruptions worsen.
“If the public understands the need to reduce consumption in order to ensure continuous fuel supply, the fiscal issue will eventually resolve itself indirectly,” he explained.
Protecting Low-Income Groups and Motorcyclists
The government also emphasised that targeted subsidies remain crucial for lower-income households and motorcycle users, who are considered the most vulnerable to sudden fuel price increases.
Motorcyclists, for example, are estimated to consume only around 50 litres of petrol monthly and are expected to continue receiving substantial fuel support under any revised mechanism.
Liew noted that protecting vulnerable groups is not only an economic necessity but also essential for maintaining social and political stability during challenging economic conditions.
Sabah and Sarawak Diesel Subsidy Plans Under Review
In addition to RON95 reforms, the government is still studying a targeted diesel subsidy mechanism for Sabah and Sarawak, similar to the BUDI95 framework currently implemented in Peninsular Malaysia.
Push for Long-Term Energy Transformation
Beyond short-term subsidy adjustments, Liew said Malaysia must accelerate investments in public transportation, electrification, and compact urban planning to reduce long-term dependence on fossil fuels.
He described BUDI95 not merely as a subsidy programme, but as a strategic national tool to manage fuel demand and strengthen Malaysia’s energy resilience during prolonged global uncertainty.
Badrulamin Luthfi (mobamil96@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.