Post by : Raman

Kuala Lumpur: The Malaysian government is planning to gradually restrict its Budi Madani RON95 (Budi95) fuel subsidy for higher income groups, aiming to make the system fairer and more efficient. This was confirmed by Muhammad Kamil Abdul Munim, political secretary to Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.

Currently, all Malaysian citizens with valid identity cards and driving licences can buy RON95 petrol at RM1.99 per litre. The government has taken the first step by excluding non-citizens from the scheme. Officials are monitoring this phase before moving on to restrict high-income earners, informally referred to as the “T15” — the top 15th percentile of earners.

“The phased approach helps prevent disruptions and technical challenges. It also ensures the subsidy system works efficiently while minimizing revenue loss,” Muhammad Kamil said during a press conference in Kampung Simee.

Under the current policy, each eligible citizen can purchase up to 300 litres of RON95 per month. This limit was set after consultations and is based on average household fuel consumption of 200 to 220 litres, rounded up to avoid disputes. The limit also prevents misuse, such as reselling cheap fuel for profit.

Muhammad Kamil stressed that the government is committed to ensuring the subsidy provides real savings to Malaysians. Starting September 30, all citizens with a valid driving licence will be eligible for subsidized RON95 petrol under the current scheme.

The planned changes reflect Malaysia’s ongoing efforts to reform fuel subsidies, targeting assistance to those who need it most while maintaining fairness and efficiency in the system.

Malaysia fuel subsidy, Budi Madani RON95, RON95 petrol, high-income earners, Malaysia news, fuel policy