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The government is rolling out the BUDI95 programme, a new targeted subsidy system designed to curb financial leakages and ensure only citizens benefit from reduced fuel prices
Malaysians with an active driving license can purchase RON95 petrol at a subsidised rate of RM1.99 per litre using their MyKad for verification, with a monthly quota of 300 litres.
Under this reformed system, non-citizens and other ineligible individuals will pay the full, unsubsidised market price, with the government aiming to redirect savings to other public welfare programmes, according to the Finance Ministry.
Below is the official list of Frequently Asked Questions (FAQs) about the newly-launched RON95 scheme, with answers provided by the ministry.
1. What is BUDI MADANI RON95?
BUDI95 addresses leakages caused by smuggling and subsidies given to non-citizens by raising the retail price of RON95 to a non-subsidised level, estimated to be around RM2.60 per litre.
At the same time, Malaysian citizens continue to enjoy RON95 petrol at a lower subsidised price of RM1.99 per litre by using their MyKad.
BUDI95 benefits the people by reducing the price of RON95 for citizens. Additionally, savings from addressing these leakages will be distributed to programmes that benefit the public, such as the Sumbangan Asas Rahmah (SARA).
2. What is the difference between the new BUDI95 system and the existing system?
The existing system is a blanket subsidy where all consumers (including companies and non-citizens) purchase RON95 petrol at a single subsidised pump price (previously RM2.05 per litre).
BUDI95 is a targeted subsidy through a tiered pricing approach where citizens using their MyKad enjoy a subsidised price of RM1.99 per litre for RON95, while non-citizens will be charged the pump price at a non-subsidised level, currently estimated to be around RM2.60 per litre.
In terms of mechanism, the main difference for BUDI95 compared to before is that purchasing RON95 petrol at the subsidised price requires a verification step using the Malaysian citizen's identity card (MyKad) at the petrol station.
In addition, each individual has a monthly eligibility ceiling of 300 litres per month to purchase RON95 petrol at the subsidised price.
Previously, citizens and non-citizens enjoyed the same benefits without any ceiling. This leakage and inequality resulted in significant losses for the government and the people.
3. What are the main benefits of BUDI95 for the people?
BUDI95 will ensure that only eligible Malaysian citizens receive the RON95 petrol subsidy from the government, compared to the previous blanket subsidy, which was at risk of being exploited by smugglers and foreign nationals.
With this, BUDI95 allows citizens to enjoy a lower price for RON95 petrol.
Additionally, the savings from BUDI95 can be redistributed for the benefit of Malaysians through other social benefit programmes, like SARA.
4. Why is the implementation of BUDI95 important for the country?
The retargeting of the subsidy for RON95 is crucial in reducing leakages, thereby allowing the nation's limited resources to be focused on benefiting the people.
Targeting the RON95 subsidy and reducing billions of ringgits in national revenue loss will contribute to a stronger and more sustainable national financial position.
The savings in expenditure can provide fiscal space to enhance the country's economic resilience when facing global economic challenges.
5. How does BUDI95 support the national economy?
The shift from a blanket subsidy method is in line with the government's reform agenda, which emphasises the importance of good governance.
The low retail price of RON95 petrol in Malaysia increases smuggling activities to neighbouring countries, causing leakages and losses to the nation.
By reducing leakages and smuggling, the government can save on expenditure and channel these savings to benefit the people, such as through SARA aid, as well as to important sectors like education, health, and infrastructure.
With these widespread benefits, the risk of inflation can be curbed. This was proven when the shift from a blanket diesel subsidy to BUDI MADANI Diesel in 2024 did not put pressure on prices; in fact, the inflation rate remained low at 1.8%.
Controlling inflation is crucial for Malaysia as it pursues the MADANI Economy aspiration, which is to raise the ceiling of the country's growth potential and raise the floor of the people's standard of living.
A sharp increase in prices not only weakens the people's purchasing power but also increases the government's debt financing costs.
6. How can citizens check their eligibility before the programme takes effect?
Eligibility can be checked on the official portal starting from 25 September 2025 (Thursday). Click on the BUDI MADANI RON95 link, then click "Check Individual Eligibility" and enter your MyKad number.
7. Will I get RON95 for free if I am listed as an eligible recipient?
You still need to make a payment for the purchase of RON95 petrol. Eligibility means you can buy RON95 petrol at a lower subsidised price of RM1.99 per litre, compared to the non-subsidised RON95 petrol price for non-citizens and ineligible groups.
The difference between the RM1.99 per litre price and the pump price is the subsidy for the people, which will be borne by the government.
For consumers, there is no significant change in the experience of buying RON95 petrol. If you previously bought RM10 worth of RON95 petrol, you will still buy it for RM10, but you will receive more litres for that purchase.
8. Will different BUDI95 amounts be set for different individuals? How many litres are Malaysian citizens entitled to receive?
The same amount is set by the Ministry of Finance for every eligible Malaysian. All Malaysian citizen identity card holders with an active driving license are eligible to buy RON95 at a subsidised price of RM1.99 per litre up to 300 litres per month. This BUDI95 eligibility balance will be renewed at the beginning of each month.
9. What is the rationale behind setting the monthly eligibility balance at 300 litres, and how was this figure determined?
BUDI95 recipients will receive an eligibility of 300 litres of RON95 per month at a subsidised price. This amount is set based on government data, which shows that it is sufficient for over 99% of private vehicle users.
Government data also shows that the average petrol consumption by private vehicle drivers is only around 80 litres per month. However, the government has set a higher eligibility ceiling to account for the range and distribution of usage among individuals.
Setting this eligibility is also important to prevent the subsidy from being misused by unauthorised parties. For decades, unlimited subsidies have been a target for smuggling to neighbouring countries where oil prices are much higher, as well as large-scale use by commercial companies that enjoy cheap subsidies for business profits. With the new mechanism, the subsidy will truly reach Malaysian citizens and no longer leak out of the system.
If necessary, adjustments will be made, including considering increasing the eligibility for certain groups.
10. If I own more than one vehicle, will my monthly eligibility ceiling be doubled?
In general, the same eligibility is given to each individual. Eligibility is not based on the number of vehicles owned by an individual. Owning more than one vehicle will not increase your BUDI95 eligibility.
11. What price will I have to pay if I want to fill up with more than the stipulated monthly eligibility ceiling?
The BUDI95 eligibility amount has been set at a suitable level based on the monthly consumption data of Malaysians. The amount will be renewed at the beginning of each month.
12. What will be the unsubsidised price of RON95 after this programme takes effect?
The unsubsidised pump price for RON95 will be determined by the Ministry of Finance with reference to the Automatic Pricing Mechanism (APM). Through the APM formula, the RON95 pump price will take into account market price movements, while the government will simultaneously prevent excessive volatility in pump prices.
13. Can my wife and I use our respective MyKads to fill up the same vehicle?
Yes, you and your wife (and any other individual) can use your respective MyKads to fill up the same vehicle, provided the MyKad owner is present and making the purchase. You are not allowed to use someone else's MyKad or lend your MyKad for the purpose of purchasing BUDI95.
Possessing and using someone else's MyKad is also an offence under the National Registration Act 1959 and the National Registration Regulations 1990 (Regulation 25).
14. Can I use someone else's MyKad to fill up with subsidised petrol?
No.
You can only fill up with BUDI95 using your own identity card or an application that has performed electronic identity verification (e-KYC).
15. If in a particular month, I still have a remaining balance of my BUDI95 subsidy eligibility, can this balance be carried forward for use as an addition in the following month?
No.
The eligibility ceiling will be renewed at the beginning of each month and cannot be carried forward to the next month.
16. Is the BUDI95 eligibility for e-hailing drivers the same as for other Malaysians?
The government is aware that e-hailing drivers, especially those working full-time, may require additional BUDI95 eligibility. In this regard, the government is currently in discussions with e-hailing operator companies to formulate a solution that takes into account the needs of e-hailing drivers. Details of this process will be announced in the near future.
17. Is the method of purchasing RON95 now more difficult with the MyKad method?
The MyKad is only used at the beginning of the purchase process to verify an individual's eligibility for the BUDI95 purchase. The public can continue to pay as usual using cash, credit/debit cards, e-wallet applications, or oil company applications.
18. Can all types of identity cards issued by the National Registration Department be used for BUDI95? Do I need to replace my identity card with the latest version?
Malaysian citizens holding an Identity Card with an active driving license (of the permitted class and type) are eligible for BUDI95. Driving license data will be cross-checked with the National Registration Department (JPN).
If your Identity Card has been successfully used for SARA expenditures, it does not need to be replaced and can be used for BUDI95.
You do not need to replace your Identity Card as long as you have an Identity Card with a chip, which has been introduced since 2001. For those who do not yet have a chipped Identity Card, please visit the nearest JPN branch to obtain one. If there has been a change in your appearance compared to your current MyKad, you are also advised to replace your MyKad to ensure your identification information is always accurate and up-to-date.
19. What are the conditions or situations that require me to replace my MyKad?
- The card fails to be read by machines or self-service kiosks.
- A bank/government agency rejects a transaction using your card because the system cannot detect the card's data.
- The card needs to be scanned multiple times due to a chip problem.
- Physical damage to the card.
- The card is too old (more than 10 years).
Replace your MyKad at any National Registration Department (JPN) branch, including at UTCs, as well as through mobile services by JPN such as the MEKAR Bus and MEKAR Van
20. How do I purchase subsidised RON95?
The purchase of subsidised RON95 only adds one step to the usual method of buying petrol. This step is to verify eligibility and the remaining balance before the purchase proceeds.
For cash payments, you can verify your MyKad at the MyKad reader at the indoor or outdoor counter.
For credit/debit card payments, you can verify your MyKad at the payment terminal on the fuel pump.
If you use the TNG e-wallet app or an oil company app, you only need to perform e-KYC once and do not need to physically verify your MyKad at the petrol station.
All registered stations have the capability to conduct sales via cash payment; other methods depend on the readiness of the respective station.
21. Can I buy RON95 for non-vehicle use (e.g. community drums, fishing boats)?
Yes.
You can buy RON95 for non-vehicle use if you have a special permit from the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP).
Please be reminded that the primary purpose of the RON95 subsidy is for the daily use of private vehicles, and every BUDI95 purchase will reduce your available eligibility balance.
22. Do I need to verify my driving license when purchasing subsidised RON95?
You only need to use your MyKad to verify the process of purchasing subsidised RON95. You do not need to present your driving license during the purchase.
23. What should I do if the eligibility check on the official portal shows that I am not eligible for BUDI95?
If the check shows you are not eligible, the system will display an ineligibility code along with the reason. For example:
| Description | Follow-up action to be taken |
|---|---|
| Driving license is inactive based on agency records. | Please visit the nearest Road Transport Department (JPJ) for further checks/updates. |
| Driving license is not from an approved class and type of license. | Please visit the nearest JPJ for further checks/updates. |
| Individual has no MyKad record in agency data/MyKad Number requires further checking. | Please visit the nearest National Registration Department (JPN) branch office for further checks/updates. |
| Not in the list of MyKad holders with an active car or motorcycle driving license based on JPJ records. | Please visit the nearest JPJ for further checks/updates. |
After you have updated your information with the relevant agency, you can re-check your eligibility through the official portal.
24. What should I do if the system or card reader at the petrol station cannot read my MyKad?
If your MyKad cannot be read on the first attempt, the petrol station staff will try to scan the MyKad three times. If it still cannot be read, the staff will check your eligibility again by manually entering your identity card number into the MyKasih terminal or the station's indoor payment terminal (IPT).
You are advised to update your MyKad if it is damaged or has not been renewed for more than 10 years.
However, citizens do not need to rush to renew their MyKad if they have successfully redeemed SARA or SARA Appreciation assistance, as this proves that the MyKad chip is functional.
25. What will happen if the subsidy verification system at the petrol station is not working or the station has no Internet connection?
Each petrol station operator will have its own business continuity plan to allow citizens to purchase RON95 petrol at the subsidised price (RM1.99 per litre) if the system experiences a disruption or the Internet connection is down.
26. Will BUDI95 recipients be limited to one purchase per day?
The government has absolutely no plans to do so.
Although the government is studying measures to prevent the misuse of the RON95 subsidy, BUDI95 is implemented with the intention of ensuring the daily needs of Malaysians can be met. A once-a-day purchase limit is clearly not aligned with that purpose.
27. Why is cash aid not given directly?
This targeted subsidy method ensures the efficient management of the country's finances so that the people can continue to enjoy subsidies sustainably.
The BUDI95 programme is a continuation of targeted aid methods like SARA and aims to ensure that subsidised RON95 petrol is targeted to eligible Malaysians for use in daily transportation and to prevent leakages in expenditure.
28. How is the personal information in my MyKad protected from any misuse?
The personal information in your MyKad is protected with a high level of security through a controlled system and the latest verification technology.
This matching process is handled through a centralised database owned by the government, with strict adherence to security standards and data protection principles.
29. Do oil companies and payment applications like Touch 'n Go and company apps have access to my personal information?
According to the Personal Data Protection Act 2010 (PDPA), when you go through e-KYC, you have given consent for your data to be accessed through the payment application.
These payment applications will not get access to your personal information, except with your permission when you use the application to make a payment.
