One of the most tangible cost-of-living measures of Anwar Ibrahim's government is BUDI95 — the targeted RON95 petrol subsidy that keeps fuel affordable for ordinary Malaysians while removing the benefit from those who do not need it.
Under the programme, eligible Malaysian citizens pay a fixed RM1.99 per litre for RON95 petrol. That price took effect on September 30, 2025, and has been maintained throughout 2026 despite volatile global oil markets. Buyers who do not qualify — including non-citizens and large companies — pay the unsubsidised market float price instead.
Eligibility is broad and simple: any Malaysian citizen with a valid driving licence qualifies, an estimated 16 million or more people. There is no separate registration; eligibility is verified at the pump using the MyKad identity card. The subsidy is intended for personal use, which is why companies and foreigners are excluded.
The programme does carry a monthly quota. The standard limit was set at 200 litres per person, a level in place since April 1, 2026, when it was trimmed from 300 litres as a temporary response to higher oil prices driven by conflict in West Asia. The government has said most users are unaffected, noting that the average BUDI95 user consumes around 100 litres a month and roughly 90% buy under the 200-litre cap. E-hailing drivers can apply for a higher quota.
The fiscal logic is significant. Combined RON95 and diesel subsidies had been running at roughly RM4 billion a month. By targeting the benefit at citizens rather than subsidising fuel for everyone — including wealthy buyers and foreigners — the government aims to save substantial public funds. Officials have indicated the quota would only be tightened further if global crude prices were to spike dramatically.
For households feeling the squeeze of rising costs elsewhere, the stable RM1.99 pump price has been one of the government's most visible reassurances heading into 2026.
