KUALA LUMPUR – The Budi Madani RON95 petrol subsidy (Budi95) will remain in place for all groups, including high-income earners in the T20 category, for the time being, according to Transport Minister Anthony Loke.
Loke said the government needs a simple system to manage fuel-related issues, and therefore the Budi95 subsidy framework will continue to cover all household income groups.
“Budi95 is a simple system that allows all Malaysians to enjoy fuel subsidies using only their MyKad, within a controlled environment and quantity.
“It is also aimed at minimising leakages. Therefore, we are maintaining the system. There are no plans to remove subsidies for the T20 group at this point.
“As I mentioned two days ago, the government is always discussing subsidy rationalisation, but the most important thing is finding the best mechanism,” he was quoted as saying by The Star.
He said this during the Malaysia Commercial Vehicle Expo (MCVE) 2026 in Serdang today.
Recently, Anwar Ibrahim said the government was still studying the best mechanism regarding proposals to review petrol subsidies for the T20 income group.
Earlier, Economy Minister Akmal Nasrullah Mohd Nasir was reported as saying that the Prime Minister is expected to announce a plan on sustaining the nation’s fuel supply by mid-month, following uncertainty in global supply due to the prolonged conflict in West Asia and the closure of the Strait of Hormuz.
According to Akmal, the plan is expected to focus on ensuring domestic fuel supplies remain sufficient to support ongoing economic activity, after the government had previously assured that current reserves could last until June.
Last Saturday, Muhamad Akmal Saleh said UMNO Youth would table a proposal to withdraw petrol subsidies for high-income earners (T20) at the party’s Supreme Council meeting, as one of the key resolutions arising from the National Roundtable Discussion (Rimbun 2.0).
Akmal said targeted subsidy rationalisation was important as the country faces economic challenges stemming from the ongoing conflict in West Asia.
Meanwhile, Loke stressed that the core principle behind the government’s Budi95 policy is simplicity.
“We have simplified the entire process. The Cabinet has discussed this for a long time and most Cabinet members agree that it must remain a simple system,” he said. – May 14, 2026.
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