Malaysia’s targeted RON95 fuel subsidy under the Budi Madani RON95 (Budi95) programme is expected to save the government between RM2.5 billion and RM4 billion annually, depending on global oil prices, exchange rates and actual fuel consumption.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the savings are achieved by ensuring subsidies are no longer enjoyed by ineligible groups, including foreign nationals and commercial users.
As of July 31, more than 14.2 million Malaysians out of over 16.7 million eligible individuals had purchased RON95 at the subsidised price of RM1.99 per litre, with total consumption exceeding 13.4 billion litres.
Based on Budi95 usage data collected between October 2025 and June 2026, fewer than one per cent of users consistently consumed more than 200 litres of RON95 per month, while the average monthly usage was about 100 litres.
Amir Hamzah said the findings show that the current monthly eligibility limit of 200 litres is sufficient to meet the needs of the vast majority of recipients without affecting their daily travel patterns.
Responding to a question in the Dewan Negara, he said the savings would not simply be retained as fiscal surplus but would instead be channelled back into programmes that strengthen Malaysia’s social safety net.
Among the initiatives benefiting from the savings are the increased allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM15 billion, RM3.1 billion for welfare assistance through the Social Welfare Department (JKM), and RM1 billion to help address the rising cost of living, including the Program Jualan Rahmah Madani.
The government will also continue programmes such as the Early Schooling Assistance (BAP), the My50 Monthly Pass, and the BAS.MY 30-Day Pass and Concession Card to help ease the financial burden on Malaysians.
