Many Malaysians are still scratching their heads over the BUDI MADANI RON95 (BUDI95) initiative, especially on why the government set the monthly fuel limit at 300 litres.
Based on real consumption data
To clear the air, Treasury Secretary-General Datuk Johan Mahmood Merican revealed that the decision wasn’t made lightly.
He said the Department of Statistics Malaysia (DOSM) and the Ministry of Finance provided data showing that:
- 90% of vehicle users consume 140 litres or less per month
- 95% use 180 litres or less per month
With this in mind, the Cabinet decided to set the limit at 300 litres, ensuring 99% of ordinary Malaysians are covered under the scheme.
For instance, a Perodua Axia driver can easily commute daily between Seremban and KL within the 300-litre limit. A Proton Saga owner can also travel up to 200km a day without issue,” he explained.
Clarifying the foreign vehicle ban
But what about foreign vehicles? Johan took the opportunity to address this too, confirming that the ban on foreign-registered cars buying RON95 remains in place.
“They can only buy RON97 and above,” he said firmly.
This rule also applies to Malaysians working abroad, such as in Singapore or Thailand, who drive back with foreign-registered cars.
That policy has always been there. Even if the driver is Malaysian, foreign-registered cars cannot use RON95,” he clarified.
Spike in driving licence renewals
Finally, Johan touched on another important point: having a valid driving licence.
Under this initiative, only licensed drivers can buy subsidised fuel.
Interestingly, since BUDI95 was announced, over 25,000 people renewed their licences in a single day, a move likely triggered by the new requirements.
