Cover image via Business Today
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All Malaysians will be able to buy RON95 petrol at RM1.99 per litre starting 30 September 2025 under the government's new BUDI95 initiative
In an announcement today, 22 September, Prime Minister Datuk Seri Anwar Ibrahim stated that every Malaysian with a valid driving licence will automatically qualify for the subsidy, regardless of their income level.
Anwar described BUDI95 as part of the government's effort to ensure subsidies are enjoyed exclusively by Malaysians while freeing up savings for other public priorities.
"The savings from BUDI95 will be channelled back to the people through STR and SARA assistance, while continuing to improve healthcare, education, and basic infrastructure," Anwar said.
For foreigners living and working in the country and using Malaysian-registered vehicles, the price will be unsubsidised, estimated at RM2.60 per litre.
Under the new scheme:
- Malaysians with an active driving licence will pay RM1.99 per litre for RON95 (down from RM2.05).
- Non-citizens will pay the unsubsidised price, expected to be around RM2.60 per litre, with the final rate to be set by the Ministry of Finance.
- Foreign-registered vehicles can only refuel with RON97 as per existing rules.
- Foreigners driving Malaysian-registered vehicles can buy RON95 but only at the unsubsidised rate.
The benefit is capped at 300 litres per month, although e-hailing drivers will be exempt from this cap and can apply for higher limits
According to the Department of Statistics, more than 99% of private motorists in Malaysia consume less than 300 litres monthly.
Every Malaysian motorist automatically qualifies for the subsidy — no registration required.
To access it, drivers only need to verify their MyKad at the pump or counter. Digital verification is also available via Touch 'n Go eWallet or fuel apps like Setel (PETRONAS) and CaltexGO.
Meanwhile, the Ministry of Finance has advised Malaysians to ensure their MyKad chip is functional and their driving licence is valid ahead of the transition.
However, those who have successfully redeemed SARA benefits or received other government aid using their MyKad need not rush to renew, as that indicates the chip is working.
The rollout will be staggered to avoid system congestion
- 27 September – Early access for 300,000 police and armed forces personnel
- 28 September – Early access for Sumbangan Tunai Rahmah (STR) recipients
- 30 September – Open to all 16 million eligible Malaysians aged 16 and above with a valid driving licence
