The government will maintain the temporary monthly quota of 200 litres under the BUDI MADANI RON95 (BUDI95) initiative for now, as global fuel supply pressures continue to be monitored, according to the Finance Minister’s political secretary Muhammad Kamil Abdul Munim.
He said all policy decisions relating to the subsidy programme will be discussed during weekly meetings of the National Economic Action Council, taking into account current economic conditions and the country’s fiscal capacity.
“We need to consider the broader situation, including global oil supply. At the moment, conditions remain stable and the government is closely monitoring developments,” he said in an interview on Bernama TV’s Ruang Bicara programme.
He added that Malaysia has also diversified its oil import sources and is no longer heavily reliant on supplies from the Middle East, helping to reduce exposure to geopolitical risks.
The government had earlier reduced the BUDI95 quota from 300 litres to 200 litres per month effective April 1, 2026, following tensions in West Asia, while maintaining the subsidised RON95 price at RM1.99 per litre.
Muhammad Kamil said the administration remains committed to sustaining fuel subsidies despite suggestions from the World Bank to raise the subsidised RON95 price to RM2.05 per litre.
He noted that while initial resistance was expected, the revised subsidy mechanism has helped reduce leakages and improved efficiency in distribution, allowing the current framework to remain in place for now.
