A new targeted fuel subsidy scheme for RON95 petrol will kick in on Sept 30, where all Malaysian citizens with a valid driving license can enjoy RM1.99 per litre under the BUDI95 subsidy programme, but only up to 300 litres per month.
Prime Minister Datuk Seri Anwar Ibrahim made the announcement earlier today, explaining that the subsidy aims to help regular Malaysians manage living costs while keeping things fair for heavier petrol users.
Here’s how the new pricing works
Currently, the unsubsidised price of RON95 stands at RM2.05 per litre. With the new subsidy, the price drops by 6 sen to RM1.99 per litre for the first 300 litres each month.
According to China Press’ calculations:
- 100 litres: RM199 (Old price: RM205) → Save RM6
- 200 litres: RM398 (Old price: RM410) → Save RM12
- 300 litres: RM597 (Old price: RM615) → Save RM18
But here’s the catch: once you exceed the 300-litre cap, the price jumps to RM2.60 per litre for every extra litre consumed.
Where the prices break even
Calculations show that at around 333 litres, your monthly petrol spending will be roughly the same as before the subsidy, at RM683.
If you go beyond that:
- 400 litres: RM857 (Old price: RM820) → Pay RM37 more
- 500 litres: RM1,117 (Old price: RM1,025) → Pay RM92 more
This means light to moderate users will benefit, but heavy petrol users will end up paying more if they exceed the cap.
