Malaysia might see another tightening of its RON95 fuel subsidy system, with the government now reportedly considering lowering the monthly subsidised petrol quota to 150 litres under the BUDI95 programme.
Most Malaysians Use Less Than Current Fuel Subsidy Threshold
The possible revision comes just a shy of 2 months after the quota was reduced from 300 litres to 200 litres in March, amidst the price increase for crude oil, due to the ongoing conflict. It is also part of the government’s broader subsidy rationalisation efforts aimed at improving efficiency and reducing leakages in the system.
Speaking during a fireside chat at the Affin Market Outlook 2026: Propelling Malaysia Forward event on Tuesday, Deputy Finance Minister Liew Chin Tong said consumption data shows that a majority of Malaysians are already using well below the current threshold.
“Around 80% of Malaysians consume less than 200 litres of petrol monthly, while roughly 60% use under 150 litres”, he mentioned.
Based on those figures, the government is now studying whether the subsidised allocation can be lowered further to better target those who genuinely require assistance. The proposed move is part of ongoing efforts to streamline fuel subsidies while ensuring public funds are distributed more efficiently. However, any further reduction is likely to spark debate among motorists, especially long-distance commuters and those who rely heavily on private vehicles for work.
More to be announced soon.
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