The government may reduce the monthly subsidised RON95 fuel quota to 150 litres under the BUDI95 programme amid rising global oil prices.
PETALING JAYA: The government is considering a further reduction of the monthly subsidised RON95 fuel quota under the BUDI95 programme, potentially lowering the limit to 150 litres per month as part of a broader strategy to safeguard national fuel supplies.
Deputy Finance Minister Liew Chin Tong revealed that current consumption data support this move, stating that a significant majority of the population remains below this threshold.
This follows a previous reduction in March, which saw the cap lowered from 300 litres to 200 litres.
Speaking during a fireside chat at the Affin Market Outlook 2026: Propelling Malaysia Forward event on Tuesday, Liew provided a statistical breakdown of fuel usage across the country.
“The data consistently show that 80% of Malaysians use less than 200 litres. The next step is 150 litres [as] 60% of the population uses less than 150 litres,” he was quoted as saying by The Edge.
Liew suggested that lowering the cap to 150 litres is a logical progression given these usage patterns.
The proposal comes amid a sharp spike in crude oil prices, triggered by the escalation of geopolitical conflicts in the Middle East in late February. This has resulted in the government’s monthly fuel subsidy expenditure increasing nearly tenfold.
Liew described BUDI95, which allows eligible motorists to purchase RON95 at RM1.99 per litre—as a “demand management tool.”
He emphasised that the country must prioritise supply stability, especially since the last official update confirmed national oil security only until early July.
“The country needs to ensure it has a sufficient and stable domestic fuel supply if the geopolitical crisis drags on longer than expected,” Liew added.
