SHAH ALAM - Starting Sept 30, Malaysians will enjoy cheaper petrol as the government officially rolls out its targeted subsidy programme for RON95, known as BUDI Madani RON95 (BUDI95).
Prime Minister Datuk Seri Anwar Ibrahim announced today that the pump price of RON95 will be reduced from the current RM2.05 per litre to RM1.99 per litre for eligible Malaysians.
“This is a commitment fulfilled by the Madani government to implement targeted subsidies while ensuring the people continue to benefit from lower RON95 prices,” Anwar said.
Who gets it?
- All Malaysian citizens aged 16 and above with a valid driving licence will automatically qualify for BUDI95.
- Non-citizens and large companies, however, are excluded from the scheme and will have to pay the unsubsidised price, estimated at RM2.60 per litre.
- Each eligible motorist will receive up to 300 litres of subsidised RON95 per month.
- Anwar, who is also the Finance Minister, explained that this cap was set based on Department of Statistics data showing more than 99 per cent of private vehicle users do not exceed that amount.
- E-hailing drivers are exempted from the 300-litre ceiling and can apply for higher quotas to sustain their livelihoods.
How to access the subsidy
The government has designed the process to be simple:
- No registration required
- MyKad verification needed at petrol stations for each purchase
- MyKad readers will be available at fuel pumps and inside station convenience stores
- Digital options through e-wallets like Touch ‘n Go and petrol apps such as Setel (Petronas) and CaltexGo
Phased rollout
To ensure a smooth transition, BUDI95 will be implemented in stages:
- Sept 27 (Saturday): Police and armed forces personnel will be the first to enjoy the RM1.99 price.
- Sept 28 (Sunday): B40 households receiving Sumbangan Tunai Rahmah (STR) will be included.
- Sept 30 (Tuesday): The programme expands nationwide, covering 16 million Malaysians.
The targeted subsidy impact?
Anwar stressed that savings from subsidy targeting would be channelled back to the people through Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah (SARA), as well as improvements in healthcare, education and basic infrastructure.
He also reminded Malaysians to ensure their MyKad chip and driving licence are valid ahead of the BUDI95 launch.
Those already receiving STR or SARA should have no issue, as successful claims indicate a functioning MyKad.
The Finance Ministry, he said, will provide further updates on the programme, with the public urged to follow only official channels for accurate information.