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THE government’s targeted fuel subsidy programmes under the Madani economy framework have successfully reduced financial leakages, optimised public spending, and ensured that eligible groups continue to receive support, the Finance Ministry stated in a written parliamentary reply.
Under the Budi95 programme, all Malaysian citizens with a MyKad and a valid driving licence are entitled to purchase RON95 petrol at RM1.99 per litre. Non-citizens pay the unsubsidised retail price of approximately RM2.60 per litre, based on the automatic pricing mechanism.
For diesel, the Budi Madani programme, launched on June 10 last year in Peninsular Malaysia, provides monthly cash assistance of RM200, or RM2,400 annually, to eligible private diesel vehicle owners, farmers, smallholders, and land transport operators.
“As of Sept 30, more than 140,000 individuals under Budi Individu and 180,000 participants under Budi Agri-Komoditi have been approved, involving total payments of RM430 million and RM350 million respectively,” the ministry said in response to Mohd Nazri Abu Hassan (PN-Merbok).
Additionally, under the Budi MySubsidi Diesel programme, 121,618 companies covering 355,074 vehicles have been approved to use fleet cards, enabling them to continue purchasing diesel at RM2.15 per litre.
This measure stabilises logistics operating costs and helps keep essential goods affordable.
“Overall, the implementation of the targeted fuel subsidy initiative has generated annual savings of around RM5 billion since its introduction,” the ministry noted.
It added that the savings have eased fiscal pressure, allowing funds to be redirected to programmes such as Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah (SARA), which reduce the cost-of-living burden for low-income groups while supporting national development projects. - November 4, 2025
