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THE Malaysian government has begun the nationwide rollout of its targeted petrol subsidy programme, BUDI MADANI RON95 (BUDI95), with over five million low-income Malaysians under the Sumbangan Tunai Rahmah (STR) scheme now eligible to purchase RON95 petrol at a subsidised price of RM1.99 per litre.
The initiative, which took effect today, represents the second phase of the BUDI95 programme and follows a successful pilot involving some 300,000 members of the Royal Malaysia Police (PDRM) and the Malaysian Armed Forces (ATM).
According to the Ministry of Finance, nearly 20 per cent of these personnel had made subsidised fuel transactions by 9:00pm on the first day of implementation, with RM2.6 million worth of fuel purchased, amounting to 1.3 million litres.
"The system remains stable and the MyKad terminal verification process at petrol stations has been functioning smoothly," the Ministry said, expressing appreciation to the PDRM and ATM members for participating in the pilot phase.
Home Minister Datuk Seri Saifuddin Nasution Ismail noted that the successful launch also served as a stress test for the system, ensuring its readiness for wider adoption.
The subsidy programme was first announced by Prime Minister Datuk Seri Anwar Ibrahim on 22 September. It is being introduced in stages to avoid sudden surges in demand and to ensure seamless implementation.
The next expansion is scheduled for 30 September 2025, when BUDI95 will be made available to approximately 16 million Malaysians aged 16 and above who hold valid MyKad and driving licences.
“This is a benefit reserved exclusively for Malaysian citizens,” said Anwar. “Savings from this transition will be channelled back to the people, including through the STR cash aid and the Sumbangan Asas Rahmah (SARA) initiative. But the government’s focus remains on strengthening public healthcare, education, and basic infrastructure.”
Anwar added that all citizens with valid driving licences would be automatically eligible, regardless of income level, with a monthly subsidised fuel limit of up to 300 litres. E-hailing drivers are exempt from this ceiling and may apply for additional allocations to support their livelihoods.
Foreign nationals and those not eligible will pay a market-based price for RON95, expected to be set at approximately RM2.60 per litre by the Ministry of Finance.
Anwar stressed that the implementation of targeted subsidies was made possible by improved financial governance and efforts to combat wastage and corruption. “This is the result of the MADANI Government’s commitment to clean governance, prudent financial management, and anti-corruption.”
He also reaffirmed that subsidy reforms will not compromise support for those in need. “What matters is that those who require the subsidy will receive it. At the same time, we eliminate leakages and safeguard public funds.”
The BUDI95 portal, launched on 25 September 2025, has already seen over 8.1 million users check their eligibility.
The public is encouraged to visit [www.budimadani.gov.my](http://www.budimadani.gov.my) or call 1-300-88-9595 for further details and support. - September 28, 2025
