The monthly RON95 fuel quota under the BUDI95 programme could potentially be reduced to 150 litres as part of the government’s efforts to safeguard domestic fuel supply amid growing global supply concerns linked to the ongoing West Asian conflict.
Although no timeline has been announced for the possible reduction, Deputy Finance Minister Liew Chin Tong said the BUDI95 programme allows the government to monitor fuel usage data in detail, enabling more flexible subsidy adjustments and fuel management measures based on current needs.
He noted that existing consumption patterns showed that the majority of Malaysians already use far less than the current monthly quota.
“The current quota is 200 litres per month, reduced from the previous 300 litres.
“Even with the reduction, the impact on most Malaysians has been minimal because data shows around 80 per cent of Malaysians use less than 200 litres of petrol monthly.
“The next step is 150 litres. About 60 per cent of the population uses less than 150 litres, while 50 per cent consume below 100 litres,” he said.
Liew Chin Tong was speaking during a fireside chat session titled “Malaysia’s Response to Global Energy Crisis: Build Back Better” at the AFFIN Market Outlook Conference: Propelling Malaysia Forward 2026.
He said reducing fuel consumption remains important to ensure fuel supplies can continue to be distributed consistently to the public, even at more controlled levels.
According to him, the government must continue protecting lower-income groups and motorcycle users, who would be among the most affected if fuel prices were to surge sharply.
He pointed out that motorcycle riders typically use only about 50 litres of petrol monthly and should continue receiving higher subsidy support to ease cost-of-living pressures.
Liew Chin Tong added that such an approach is also crucial in maintaining social and political stability, especially during challenging economic conditions.
He revealed that the government’s monthly fuel subsidy expenditure had increased nearly tenfold following the spike in crude oil prices driven by escalating geopolitical tensions in West Asia since late February.
Meanwhile, he said Putrajaya is still developing a targeted diesel subsidy mechanism for Sabah and Sarawak similar to the BUDI95 system.
In the longer term, he stressed that Malaysia must accelerate investments in public transportation, electrification and more compact urban planning to reduce the country’s long-term dependence on fuel.
