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THE government is considering further reducing the petrol subsidy quota through the BUDI95 programme to 150 litres per month to strengthen the implementation of the country's fuel subsidy reform.
Deputy Finance Minister Liew Chin Tong said the decision was based on an analysis that found that the majority of Malaysians were using petrol below the existing quota rate, thus allowing for adjustments to be made in stages without having a major impact on most consumers.
According to him, the current BUDI95 programme is not only aimed at channelling targeted subsidies, but also helping the government understand the people's petrol consumption patterns based on current data.
"Data shows that 80 per cent of Malaysians use less than 200 litres. For the remaining 20 per cent, they can adjust their consumption either by changing their travel times, reducing consumption or paying at the market price.
The next step is 150 litres, with 60 per cent of the population below that level, while another 50 per cent use less than 100 litres," he said.
Meanwhile, he explained that the government's main challenge at the moment does not only involve the country's finances, but also ensuring that fuel supplies remain stable in an uncertain global economic and geopolitical situation.
He explained that a phased approach is important to protect low-income groups, especially motorcyclists, from the pressure of the cost of living, in addition to encouraging more prudent fuel consumption.
"Among these is ensuring that motorcyclists continue to enjoy high subsidy rates, and at the same time ensuring that supplies remain stable for all, even at lower levels of consumption," he said.
According to him, subsidy reform is also important to ensure that the country's political and social stability continues to be maintained as the world faces economic pressure and a global geopolitical crisis. - May 12, 2026
