Nearly 90% of Malaysians use an average of just 100 litres of petrol per month, meaning most will not be affected by the revised BUDI95 subsidy quota set at 200 litres starting April 1.
Home Minister Datuk Seri Saifuddin Nasution Ismail said the adjustment was made to balance rising global fuel costs while ensuring the majority of Malaysians remain protected.
He said the world is currently facing increasing global pressure, with crude oil prices exceeding US$100 per barrel.
As a result, petrol prices in other countries have risen significantly, reaching around RM14 per litre in Hong Kong and RM10 per litre in Singapore.
Malaysia keeps RON95 at RM1.99 despite rising costs
Despite global price increases, Malaysia will continue to maintain the subsidised RON95 price at RM1.99 per litre under the BUDI95 programme.
Saifuddin said the government has taken a firm stance to shield the public from rising living costs.
However, the actual cost of maintaining the subsidy has surged sharply. Fuel subsidy spending has increased sixfold, from RM700 million to RM4 billion per month.
Quota reduced to 200L to manage subsidy burden
To ensure sustainability, the government will reduce the monthly BUDI95 quota from 300 litres to 200 litres starting April 1.
Savings from the subsidy are expected to be channelled into public spending, including building more schools, upgrading hospitals, and providing targeted financial assistance.
He said data shows that nearly 90% of Malaysians use an average of just 100 litres of petrol per month. This means the daily lives of the vast majority (9 out of 10 people) will continue as usual without any additional costs.
E-hailing drivers will also not be affected, as their quota remains at 800 litres per month to support their income.
Higher usage drivers urged to cut back
For the remaining 10 per cent who exceed the 200-litre limit, the government has encouraged more prudent fuel usage.
This includes reducing unnecessary travel, carpooling, and using public transport.
Saifuddin stressed that the quota adjustment is a temporary measure while global conditions remain unstable.
He added that the government’s priority is to continue shielding Malaysians from the full impact of rising global fuel prices.
