KUALA LUMPUR — The government could scale back the monthly subsidised RON95 petrol allocation under the Budi95 programme, as rising global fuel prices continue to strain subsidy spending amid the ongoing Iran conflict.
According to a report in The Edge, sources indicate that the current 300-litre monthly quota may be reduced to 200 litres, with an official announcement anticipated as early as this week.
The revised limit, if confirmed, is likely to take effect in April.
Under the proposed adjustment, motorists will continue to enjoy the subsidised rate of RM1.99 per litre within the quota. However, any usage beyond the 200-litre cap will be charged at the floating market price, which is set to climb by 60 sen to RM3.87 per litre from March 26 to April 1, up from RM3.27 previously.
Unsubsidised RON95 prices have already undergone two upward revisions since March 11, rising by a total of RM1.20 or nearly 45% from RM2.67 per litre.
Meanwhile, fuel prices across the board continue their upward trajectory. RON97 is expected to reach RM5.15 per litre, a sharp increase of RM1.90, or more than 58%, since March 11.
Diesel prices in Peninsular Malaysia are also projected to surge to RM5.52 per litre, marking a jump of RM2.40, or nearly 77%, over the same period.
The move to tighten the subsidy quota is widely viewed as a fiscal necessity, as Putrajaya faces mounting pressure from a growing subsidy bill.
Recently, Prime Minister Datuk Seri Anwar Ibrahim announced that fuel subsidies have surged from RM700 million to RM3.2 billion amid the spike in global oil prices. – March 26, 2026