KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim announced that the monthly quota for subsidised RON95 petrol under the BUDI95 programme will be temporarily reduced from 300 litres to 200 litres, effective April 1, as a precaution against the impact of the escalating Middle East conflict.
Speaking in a special address today, Anwar said the adjustment was necessary due to global supply disruptions, including potential restrictions in the Strait of Hormuz and interruptions to oil and gas flows.
“Although Malaysia remains in a relatively stable position, we cannot escape the spillover effects. Supply chains are being disrupted, and this will inevitably affect fuel, food and fertiliser prices,” he said.
Despite the quota reduction, the Prime Minister emphasised that the subsidised price of RM1.99 per litre will be maintained, even as many other countries have raised fuel costs.
He cited consumption data showing that the average Malaysian uses roughly 100 litres of RON95 per month, with nearly 90 per cent consuming less than 200 litres.
“This means the majority of rakyat will not be directly affected by the adjustment,” he added.
“This measure is temporary pending improvements in global oil supply and the world economy, although there are no clear signs of that yet.”
E-hailing drivers and gig workers will continue to enjoy a monthly quota of 800 litres, reflecting their operational requirements.
Anwar also confirmed that Sabah and Sarawak will continue to receive subsidised diesel at RM2.15 per litre, citing logistical and geographical challenges in the two states.
To prevent fuel leakages, limits on per-transaction purchases will be introduced: 50 litres for private vehicles and light transport, 100 litres for vehicles below three tonnes, and 150 litres for vehicles exceeding three tonnes.
The Prime Minister warned that stricter enforcement would be imposed to curb fuel smuggling, which he said leads to monthly losses of hundreds of millions of ringgit. “We cannot allow a situation where subsidies meant for the rakyat are siphoned off through smuggling and abuse,” he said, pledging firm action against offenders.
He urged the public to cooperate, acknowledging potential inconvenience but stressing that the measures are necessary to ensure fair distribution and prevent further leakages.
Additionally, the government is exploring flexible work arrangements for certain public sector roles, including working from home, while encouraging private companies to adopt similar practices to manage fuel consumption.
The BUDI95 programme, launched in late September last year, aims to ensure that RON95 subsidies benefit eligible Malaysians and curb misuse by foreigners and commercial users. Previously, Malaysian citizens aged 16 and above with a valid driving licence could purchase up to 300 litres of RON95 per month at the subsidised rate. – March 26, 2026