THIS piece of good news follows the switch to the targeted subsidy system for RON95 petrol a.k.a. BUDI MADANI RON95 (BUDI95) for the benefit of Malaysian citizens.
“The MADANI government has reaffirmed its commitment to implement targeted RON95 subsidies and reduce the price of RON95 petrol for Malaysians,” so declared Prime Minister Datuk Seri Anwar Ibrahim in a statement by the Finance Ministry.
Compared to the current RON95 petrol pump price of RM2.05/litre, MyVi owners can look forward to a saving to a 6 sen/litre savings or an estimated RM1.80 per full tank of 30 litres every time they refuel their car.
All citizens are eligible to receive a monthly eligibility ceiling of subsidised RON95 of up to 300 litres/month.
This monthly eligibility ceiling has been set based on the findings of a study by the Department of Statistics where more than 99% of private vehicle drivers in Malaysia do not exceed this amount.
E-hailing drivers are exempted from this eligibility ceiling and can apply for additional eligibility to ensure their job continuity.”
“All citizens regardless of income level who have an active driving licence will automatically be eligible to enjoy the benefits of BUDI95. This is a privilege only for Malaysians,” PMX who is also the Finance Minister (MOF) further pointed out.
For those who are not eligible such as non-citizens, they will have to buy RON95 at a non-subsidised price set by the Finance Ministry which is estimated at around RM2.60/litre.
‘Hassle-free redemption’
Towards this end, the Madani government has taken steps to facilitate the process of passing down the subsidised RON95 to the rakyat as follows:
- Firstly, no registration is required;
- Secondly, only one additional step, namely verification with MyKad for purchasing RON95 at a subsidised price; and
- Thirdly, MyKad reader terminals are provided at petrol stations and petrol pump terminals to reduce the risk of congestion. In addition, there are digital options for TNG e-wallets and oil company applications such as Setel by Petronas and CaltexGo.
Implementation-wise, the BUDI95 programme will be carried out in stages to ensure the smooth running of the system without a sudden surge in usage:
- Sept 27 (Saturday): The BUDI95 system will be opened to 300,000 military and police personnel;
- Sept 28 (Sunday): The BUDI95 system will be opened to STR (Rahmah Cash Contribution) recipients who are in the B40 group; and
- Sept 30 (Tuesday): The BUDI95 system will be opened to 16 million Malaysian citizens aged 16 and above who have a MyKad and an active driving license.
On this note, the Madani government has advised Malaysians to ensure that their MyKad chip is working and their driving license is still valid before the transition to BUDI95.
“However, the rakyat need not rush to renew their MyKad if they’ve successfully redeemed SARA (Rahmah Basic Contribution) assistance or SARA appreciation contribution as this proves that their MyKad chip is working,” noted MOF.
“MOF will release further information regarding BUDI95 from time to time. The public is advised to refer to MOF’s official channels for the latest and most accurate information.” – Sept 22, 2025
