Cover image via Suhaimi Yusuf/The Edge
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Starting 1 April, your monthly quota of subsidised RON95 under the BUDI95 programme will drop from 300 litres to 200 litres
The price holds at RM1.99 per litre, but only up to the new cap, as announced by Prime Minister Datuk Seri Anwar Ibrahim in his special address yesterday, 26 March.
"The government will adjust the eligibility for BUDI95 from 300 litres per month to 200 litres per month starting 1 April. And this step is certainly temporary while waiting for the oil situation, oil supply, and the world economy to recover," he said.
Why is the government doing this?
The war in the Middle East has pushed global crude oil prices past USD100 per barrel, a surge of more than 40%, raising risks of supply disruption and straining Malaysia's subsidy bill. Anwar has warned that the national subsidy bill could reach RM24 billion this year if crude prices remain elevated.
Cutting the quota, rather than raising the RM1.99 price, is the government's way of trimming that bill while shielding most Malaysians from a direct price hike at the pump.
What happens if you go over 200 litres?
You can still buy RON95, but at the unsubsidised market rate.
That gap is now significant; unsubsidised RON95 currently costs RM3.87 per litre, a 45% increase since 11 March.
To put that in real terms: every litre beyond your 200-litre cap costs you RM1.88 more than the subsidised price.
Will most people even notice?
Probably not immediately.
According to Anwar, government data shows the average Malaysian uses around 100 litres a month, and nearly 90% of users consume less than 200 litres. So for the majority of drivers, the new cap won't change anything at the pump.
If you commute long distances, drive a larger vehicle, or fill up frequently, it's worth checking your monthly usage.
What about e-hailing and gig workers?
They're protected.
The prime minister confirmed their ceiling stays at 800 litres per month in recognition of their heavier fuel dependency.
What about Sabah and Sarawak?
Subsidised diesel in Sabah and Sarawak stays at RM2.15 per litre. However, the government is introducing per-purchase refuelling limits to curb leakage and smuggling:
- Light vehicles and private cars: Maximum 50 litres per purchase.
- Public transport and goods vehicles (up to 3 tonnes): Maximum 100 litres per purchase.
- Vehicles above 3 tonnes: Maximum 150 litres per purchase.
Is this permanent?
No, at least not officially.
Anwar described it as a temporary measure, contingent on global oil markets stabilising. No specific end date was given.
