KUALA LUMPUR – More than 14.2 million Malaysians have benefitted from the Budi Madani RON95 (BUDI95) subsidy programme, consuming over 13.4 billion litres of fuel since its rollout, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Negara today.
He stressed that unsubsidised RON95 prices apply only to non‑citizens and those outside the eligibility framework.
“Based on actual BUDI95 usage data from October 2025 to June 2026, fewer than one per cent of users consistently consume more than 200 litres of RON95 per month. On average, RON95 consumption is around 100 litres per month,” he said during the Q&A session.
Responding to Senator Datuk Bobbey Ah Fang Bin Suan, Amir Hamzah said the targeted subsidy has delivered estimated fiscal savings of between RM2.5 billion and RM4.0 billion annually, depending on global crude prices, exchange rates and consumption trends.
On OECD’s recommendation that Malaysia phase out BUDI95, Amir Hamzah was firm:
“The BUDI95 eligibility framework allows Malaysian citizens to receive subsidised RON95 for up to 200 litres, while non‑citizens do not receive this subsidy. This has saved the government’s fiscal space.
“We fully understand that the OECD has recommended the withdrawal of all subsidies, but we cannot do that in this country. What is important is that we provide subsidies in a targeted manner rather than making abrupt changes as suggested by the OECD.”
The OECD, headquartered in France, has argued that eliminating fuel subsidies is necessary to strengthen Malaysia’s fiscal position as it moves toward high‑income nation status. – August 3, 2026