Malaysia is expected to tighten its fuel subsidy policy as global oil prices remain unstable due to the ongoing Iran conflict.
Sources told The Edge that the government may soon reduce the subsidised RON95 petrol quota under the BUDI95 programme.
Reports say the current 300-litre monthly limit could be reduced to 200 litres. The revised quota, currently priced at RM1.99 per litre, may take effect starting April if confirmed.
Once users exceed the 200-litre cap, they will need to pay the market-based floating price.
Fuel prices continue to climb
For the period of March 26 to April 1, the unsubsidised RON95 price is set at RM3.87 per litre.
This marks a 60 sen increase from RM3.27 the previous week.
Since March 11, unsubsidised RON95 has risen by RM1.20 overall, reflecting a sharp upward trend.
Other fuel categories have also recorded strong increases over recent weeks.
RON97 is expected to reach RM5.15 per litre, while diesel in Peninsular Malaysia may rise to RM5.52.
Prime Minister Anwar Ibrahim has warned that fuel subsidies could reach RM24 billion this year if oil prices stay high.
Oil prices have also fluctuated due to geopolitical tensions involving Iran, with Brent crude peaking above US$110 per barrel before easing to around US$96.
Market movements are also influenced by ongoing negotiations between the United States and Iran, as well as concerns over supply disruptions.
If implemented, the lower quota means consumers may face higher fuel expenses and drivers who exceed the 200-litre limit will need to pay nearly double the subsidised rate for additional fuel.
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