PUTRAJAYA – Most Malaysians are unlikely to be affected by the adjustment of the RON95 fuel subsidy, as around 90 per cent of users consume only about 100 litres of the fuel each month.
Home Minister Datuk Seri Saifuddin Nasution Ismail said the decision to reduce the Budi95 eligibility from 300 to 200 litres per month was a balanced approach to ensure targeted groups continued to benefit without jeopardising the country’s financial position.
He said the world was currently facing mounting global pressures, including crude oil prices surpassing USD100 per barrel, which had a significant impact on many countries.
“In Hong Kong, petrol prices reach around RM14 per litre, while in Singapore they are about RM10 per litre. This is the reality faced globally today,” he said in a statement on Friday.
He stressed that under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, the government had taken a clear stance to continue protecting the people.
“Even though the market price of RON95 has reached about RM3.87 per litre, the government maintains the subsidised price at RM1.99 per litre. This is not an easy decision, but it demonstrates leadership that is willing to make choices for the welfare of the people,” he said.
Saifuddin added that the current subsidy cost, which now amounts to around RM4 billion per month, was a significant responsibility that the government must manage carefully.
He said the implementation of the 200-litre monthly limit under Budi95 was not burdensome for the majority of Malaysians, as current consumption patterns show most users remained below the threshold.
At the same time, the government had ensured continuity for certain groups, including e-hailing drivers, by maintaining a special quota of 800 litres per month.
He also urged the public to use the subsidy responsibly, avoid wastage and plan their journeys more efficiently.
“For those who are able, a small adjustment today is a major contribution to ensuring more Malaysians continue to benefit from the subsidy,” he said.
He added that the government’s approach reflected its commitment to safeguarding the welfare of the people while other countries faced price pressures that were passed on to consumers.
“This is the strength of Malaysia Madani, while other nations have to shift the burden to their people, Malaysia chooses to protect them,” he said.
Earlier, Anwar announced that the government would temporarily adjust the Budi95 eligibility from 300 litres to 200 litres per month, effective from April 1, to ensure fuel subsidies continued to benefit the majority.
He said the measure was a targeted approach in response to global oil market uncertainty and the effects of conflicts in West Asia on supply and the global economy.