KUALA LUMPUR – The Ministry of Finance (MOF) has denied reports that the government plans to restrict subsidised RON95 petrol purchases to once a day, stressing that such a move would run counter to its goal of meeting people’s needs.
In a statement today, the ministry said it was reviewing ways to curb subsidy abuse but insisted that rumours of a daily purchase limit were inaccurate.
“Although the government is studying measures to prevent the misuse of RON95 subsidies, Budi95 has been implemented to ensure the daily needs of Malaysians can be met.
“A one-purchase-per-day limit is clearly not in line with that objective,” the statement said.
The clarification came after earlier reports stated that motorists would only be allowed to buy subsidised petrol once a day.
Starting September 30, the price of RON95 petrol will drop from RM2.05 to RM1.99 per litre under the government’s Budi Madani RON95 (Budi95) targeted subsidy programme.
The scheme is expected to cost the government RM11 billion this year, bridging the gap between the subsidised price and the current market pump price of about RM2.60.
Malaysians aged 16 and above with an active driving licence are automatically eligible for the subsidy, with verification carried out through MyKad, the same system used for distributing Rahmah Basic Contribution (SARA) aid.
Each citizen will be entitled to purchase up to 300 litres of RON95 per month, a quota the ministry said was sufficient for most motorists. E-hailing drivers may apply for additional allocations through a dedicated portal, www.budimadani.gov.my, which goes live on September 25.
According to the MOF, data from the Department of Statistics Malaysia (DOSM) shows that 99% of private drivers consume less than 300 litres monthly, making the cap both adequate and a safeguard against misues, such as cross-border smuggling.
With the shift away from blanket subsidies, the government projects annual savings of between RM2.5 billion and RM4 billion.
Officials say these funds will be redirected into targeted assistance schemes, including the Rahmah Cash Contribution (STR) and SARA.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, announced earlier that more than 16 million Malaysians are expected to benefit from the fuel subsidy, based on records from the Road Transport and National Registration Departments. — September 23, 2025
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