The government will continue monitoring developments in West Asia and fluctuations in global oil prices before deciding whether to restore the monthly BUDI95 petrol quota to 300 litres.
Finance Minister II Amir Hamzah Azizan said it is still premature for Putrajaya to make a decision on increasing the subsidised RON95 quota, which currently stands at 200 litres per month.
According to him, authorities need more time to assess the impact of the recently announced ceasefire in the region and determine whether it can help stabilise global energy markets in the long term.
Speaking to reporters, Amir noted that discussions involving the United States and Iran are expected to continue for the next 60 days, making it necessary for the government to closely observe developments before making any policy adjustments.
“We need to wait and see whether this peace agreement can be sustained and what the wider implications will be,” he said.
Despite concerns over the reduction of the monthly quota from 300 litres to 200 litres, Amir said most recipients have been able to adapt to the change without major difficulties.
Government data showed that nearly 80 per cent of BUDI95 subsidy recipients consume less than 200 litres of petrol each month, suggesting that the current allocation is sufficient for the majority of beneficiaries.
He added that changing work patterns, including the growing adoption of work-from-home arrangements, have also contributed to lower fuel consumption among motorists.
The minister also revealed that owners of private diesel-powered pickup trucks and jeeps may apply for an additional 100 litres of subsidised fuel. The measure is intended to support small business operators and residents in remote areas who travel long distances as part of their daily activities.
In addition, access to subsidised diesel priced at RM2.10 per litre through the MyKad system has been expanded to include river transport operators and generator owners in rural communities.
The government’s fuel subsidy rationalisation programme remains under close scrutiny as policymakers balance the need to manage public spending while ensuring assistance reaches those who need it most.
