Today, Malaysia’s Ministry of Finance (MoF) has announced that a tiered eligibility system under the BUDI MADANI RON95 (BUDI95) petrol subsidy programme will be activated in the middle of each month. Introducing a more tailored fuel support mechanism for e-hailing drivers based on their monthly travel distances, the scheme aims to create a fairer and more inclusive distribution of subsidised petrol while safeguarding the livelihoods of drivers who rely on fuel for their daily operations.
How the Tiered System Works
Under the updated BUDI95 framework, additional petrol quota eligibility for e-hailing drivers will be determined by travel distances recorded in the systems of e-hailing operator companies for the preceding month. Drivers who travel less than 2000 km in a month will continue to receive the basic 300 litres of subsidised RON95. Those covering between 2000 km and 5000 km will be eligible for an additional 300 litres, bringing their total monthly quota to 600 litres. Also, drivers whose travel exceeds 5000 km will receive an extra 500 litres, resulting in a maximum quota of 800 litres per month for high-mileage drivers.
The distance data used to determine eligibility will be verified by the Land Public Transport Agency (APAD) and, for Sabah and Sarawak, the Commercial Vehicles Licensing Board (LPKP), using monthly reports submitted by e-hailing operator companies. The threshold for the first tier has been lowered from 3000 km to 2000 km, and a new top tier has been introduced following analysis of e-hailing drivers’ travel patterns and actual subsidy usage.
Support for Airport Taxi Drivers and Fleet Cards
The MoF also reiterated that airport taxi operating companies may apply for a fleet card under the Subsidised Petrol and Diesel Control Scheme managed by the Ministry of Domestic Trade and Cost of Living, granting up to 800 litres of subsidised RON95 per month for eligible fleets. However, airport limousines whose fares aren’t regulated by APAD are not covered under this scheme, maintaining consistency with the targeted subsidy’s objectives.
Earlier guidance from Prime Minister Datuk Seri Anwar Ibrahim confirmed the government’s agreement to raise the BUDI95 eligibility ceiling for qualified e-hailing drivers to 800 litres per month, subject to conditions based on travel distances. This policy adjustment followed appeals and feedback from e-hailing drivers regarding their actual fuel usage under the targeted subsidy programme.
What This Means for Drivers
The tiered system represents a significant refinement in Malaysia’s approach to targeted fuel subsidies, aiming to align support more closely with actual usage patterns among ride-hailing professionals. By linking subsidy tiers to verified mileage data, the government hopes to balance fairness and fiscal stewardship while accommodating the varied operational demands of Malaysia’s e-hailing workforce. Stay tuned for more trending tech news at TechNave.com.
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