SHAH ALAM, March 26 — The BUDI95 fuel subsidy monthly quota will be revised from 300 litres to 200 litres, effective April 1, said Prime Minister Datuk Seri Anwar Ibrahim.
He said this effort, which is part of the government’s response to surging global oil prices due to the West Asia conflict, is to better target fuel subsidies without affecting the majority of Malaysians.
“We have studied whether the current use of BUDI95 is sufficient. We found that the average usage is around 100 litres per month, meaning the majority of the people use only 100 litres a month, and nearly 90 per cent consume less than 200 litres.
“Therefore, the government will adjust the BUDI95 limit from 300 litres per month to 200 litres per month, starting April 1, 2026,” he said in a special address this evening on Putrajaya’s measures to boost preparedness ahead of the global energy crisis, adding that subsidised RON95 under BUDI95 will remain at RM1.99 per litre.
He also outlined additional measures to ensure fair distribution and prevent abuse of subsidised fuel.
Addressing concerns for e-hailing drivers and gig workers, he said the BUDI95 quota for them would remain at 800 litres per month, citing the nature of their jobs.
Anwar also said subsidised diesel will stay at RM2.15 per litre in Sabah and Sarawak despite global price surges.
“We must remain vigilant and implement stricter control and enforcement. However, considering the geography and logistics in Sabah and Sarawak, we have decided on reasonable limits,” he said.
He also elaborated on the new allocation per vehicle type, where drivers of light land transport for public goods and private vehicles can buy up to 50 litres per transaction, public and goods vehicles not exceeding three tonnes can buy up to 100 litres, and vehicles over three tonnes are allowed a maximum of 150 litres per purchase.
“These limits are to ensure fuel supplies are available, fairly distributed, and sufficient for everyone.
“Without these adjustments, there is a risk of hoarding and misuse, which we have observed in the past.
“I urge the everyone to understand that these measures, though perhaps inconvenient, are necessary to protect the interests of the majority,” he said.
His announcement was made after phone calls on geopolitical tensions with various leaders in the past 24 hours, among them Qatari Prime Minister Sheikh Mohammed Abdulrahman Al Thani, Singaporean Prime Minister Lawrence Wong, Lebanese Prime Minister Nawaf Salam, and Pakistani Prime Minister Shehbaz Sharif.
Two days ago, Anwar also had a phone call with Bahrain Crown Prince and Prime Minister Prince Salman Hamad Al Khalifa and United Arab Emirates President Sheikh Mohamed Zayed Al Nahyan.
In his announcement today, Anwar stressed the need for stronger oil-related enforcement across all agencies.
“All government agencies must act decisively and remain vigilant. We cannot provide subsidies and then see (losses from) smuggling that reaches hundreds of millions of ringgit each month.
“Stern warnings will be issued early, and anyone who attempts smuggling will face the full force of government action,” he said.
Tensions in West Asia have escalated since the United States and Israel launched joint attacks on Iran on February 28.
The worsening war in the region has increasingly affected countries worldwide, including those in Southeast Asia, with the closure of the Strait of Hormuz and attacks on critical infrastructure.
