KUALA LUMPUR — The government’s targeted BUDI95 fuel subsidy programme is saving between RM2.5 billion and RM4 billion annually, with the fiscal gains being redirected towards expanding social assistance and cost-of-living support for Malaysians.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the amount saved each year depends on several factors, including global crude oil prices, foreign exchange rates and actual fuel consumption patterns.
Speaking during question time in the Dewan Negara today, Amir said the BUDI95 initiative was introduced to ensure eligible Malaysians remain protected from fluctuations in global fuel prices while curbing subsidy leakages to those who do not qualify.
The programme’s implementation, he said, has enabled the government to strengthen a more inclusive social protection system through increased allocations for targeted assistance.
“This includes increasing allocations to RM15 billion for the Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah programmes, the highest amount ever provided.
“The allocation for assistance programmes under the social welfare department this year has also increased to RM3.1 billion compared with previous years,” he said.
Amir added that allocations for the Jualan Rahmah Madani programme, Early Schooling Aid and the My50 public transport pass had also been increased to help Malaysians cope with the rising cost of living.
He was responding to a question from Senator Datuk Bobbey Suan on the annual savings generated through the implementation of the BUDI95 programme.
Citing actual usage data from October 2025 to June 2026, Amir said fewer than one per cent of BUDI95 recipients consistently consumed more than 200 litres of RON95 fuel each month.
“On average, RON95 consumption is around 100 litres per month. This shows that the current eligibility limit is sufficient to meet the needs of the majority of recipients without affecting their consumption patterns,” he said.
Amir also revealed that more than 14.2 million of the 16.7 million Malaysians eligible for BUDI95 had benefited from the scheme, accounting for the consumption of more than 13.4 billion litres of RON95 fuel.
He reiterated that the market-based, unsubsidised RON95 price only applies to buyers who are not eligible for the subsidy, including non-citizens and Malaysians who do not meet the BUDI95 eligibility criteria. – August 3, 2026