Home Minister Datuk Seri Saifuddin Nasution Ismail has reassured the public that the majority of Malaysians will remain unaffected by the upcoming adjustments to the RON95 petrol subsidy. Data indicates that approximately 90 per cent of local consumers currently use an average of only 100 litres of fuel per month, which falls well within the revised eligibility limits. The minister explained that recalibrating the Budi95 entitlement from 300 litres to 200 litres monthly is a balanced strategy designed to protect the national treasury while ensuring targeted aid continues to reach those who need it most.
This policy shift comes as the global community faces significant economic pressure, with crude oil prices surging beyond the US$100 per barrel mark. Saifuddin highlighted the stark reality of international fuel costs, noting that petrol prices in Hong Kong have reached approximately RM14 per litre, while Singapore sees rates around RM10 per litre. In contrast, the Malaysian government under Prime Minister Datuk Seri Anwar Ibrahim has maintained the subsidised price of RON95 at RM1.99 per litre, despite the actual market value rising to roughly RM3.87 per litre.
The minister emphasised that managing a monthly subsidy cost of RM4 billion is a massive responsibility that requires prudent and courageous leadership. He stated that the decision to implement the 200-litre monthly cap was made after observing that current consumption patterns for the vast majority of citizens do not exceed this threshold. By narrowing the scope of the subsidy, the government aims to curb potential leakages and ensure that the multi-billion ringgit expenditure serves its intended purpose of supporting the welfare of the common rakyat.
To ensure economic continuity for specific sectors, the government has decided to maintain a special monthly quota of 800 litres for e-hailing drivers. This move is intended to prevent operational costs from being passed on to commuters and to support the livelihoods of those in the gig economy. Saifuddin urged the public to practice mindful fuel consumption by avoiding unnecessary wastage and planning their travels more efficiently, adding that minor adjustments by those who are financially capable will contribute significantly to the nation’s long-term stability.
The Prime Minister previously announced that the temporary adjustment to Budi95 eligibility will take effect on 1 April. This targeted approach is a direct response to global market volatility and the economic impact of ongoing conflicts in West Asia, which have threatened world supply chains. By opting to shield the population from the full brunt of global price hikes, the administration asserts that its “Malaysia Madani” framework prioritises citizen protection even as other nations are forced to transfer the burden of rising costs directly to their consumers.
