BUDI95 subsidy quota might fall to 200 litres monthly starting April 2026

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According to The Edge, the Malaysian government is reviewing the distribution of RON95 (BUDI95) petrol subsidy quotas from 300 litres to 200 litres per month. That said, what should you know about it?

 

The surge in global oil prices is the main reason behind this change

For your information, the move is expected to be announced as early as this week and could be implemented as early as April. The main reason for the quota revision is the surge in global oil prices caused by the Middle East crisis.

Moreover, if crude oil prices continue to exceed USD110 (~RM440) per barrel, the government will have to bear subsidy costs of up to RM24 billion. This quota reduction is a proactive measure to control national spending in the short term.

Furthermore, speaking in the Dewan Rakyat last month, Prime Minister Anwar Ibrahim said the average consumption of Budi95 was around 100 litres per month since it was implemented last September, with 90% of users not using more than 200 litres per month.


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