BUDI95 Explained: What Malaysia’s New Petrol Subsidy Means for You

Sep 29, 2025

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Starting 30 September 2025, Malaysia officially launched the BUDI95 scheme. A new, targeted fuel subsidy system for RON95 petrol.

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If you’ve noticed price changes at the pump or heard about the new MyKad scanners, here’s everything you need to know from how it works to who actually benefits.

What Exactly Is BUDI95?

BUDI95 (short for BUDI Madani RON95) is Malaysia’s new system for targeted petrol subsidies.

Instead of giving everyone cheap fuel, the government now only subsidises eligible Malaysians.

It’s part of the BUDI Madani initiative meant to reduce waste, prevent smuggling and make sure subsidy funds go to the people who actually need them.

How Much Is RON95 Now?

Under BUDI95, there are now two prices for RON95 petrol:

RM 1.99 per litre for Malaysians who qualify for the subsidy
RM 2.60 per litre for those who don’t qualify (and for foreigners)

Each eligible person gets a monthly quota of 300 litres at the subsidised price.

If you go beyond that, any extra fuel will be charged at the unsubsidised rate.

For full-time e-hailing and delivery drivers, the quota doubles to 600 litres a month.

Who Qualifies for the Subsidy?

You’ll get the subsidised price if you:

Are a Malaysian citizen (with a valid MyKad)
Hold a valid or recently expired driving licence
Drive a Malaysian-registered vehicle

No pre-registration is needed.

You just swipe or scan your MyKad at the petrol station and the system automatically verifies if you qualify.

Foreigners, foreign-registered vehicles and companies don’t get the RM 1.99 price.

How Does It Work?

Here’s what actually happens when you fuel up:

Go to a petrol station that supports BUDI95 (most do).
Insert or scan your MyKad before pumping.
The system checks your eligibility and fuel quota.
If you qualify, you’ll be charged RM 1.99/L for the subsidised amount.
If you exceed your monthly quota, the price switches to RM 2.60/L automatically.

The Ministry of Finance says the system can handle 30,000 transactions per minute to avoid congestion at the pump.

Why BUDI95 Matters?

Fuel subsidies have always been expensive, costing Malaysia billions of ringgit a year, with much of it benefitting the wealthy or foreigners.

BUDI95 aims to fix that imbalance by targeting help where it’s needed most.

Here’s the logic:

98 % of Malaysian drivers use less than 300L of petrol monthly so most people will be fully covered.
The government expects to save around RM 2-4 billion a year, money that can be redirected to cost-of-living aid, education or healthcare.
Smuggling and cross-border leakage should reduce, since foreign-registered cars now pay full price.

Things to Keep in Mind!

You can’t use someone else’s MyKad to claim the subsidy. It’s tied to your own name and licence.
Once your 300L quota runs out, you’ll pay the higher rate until next month.
Petrol stations with MyKad scanners will show your remaining balance during each transaction.
The government is planning digital integration soon so you can check your usage via e-wallet or app.

What It Means for You?

If you’re a regular driver:

You’ll still pay RM 1.99/L, same as before but your quota now has a clear monthly limit.

If you’re a high-mileage commuter or Grab driver:

You’ll benefit from the larger quota (up to 600L) especially if you drive daily.

If you’re a foreigner or company vehicle owner:

You’ll pay the market rate of RM 2.60/L, no subsidy.

If you’re worried about cost of living:

BUDI95 may help balance Malaysia’s budget so the government can channel savings into other forms of targeted assistance (BUDI Madani cash aid, health subsidies, etc.).