Under 1% of Malaysian users exceeded RON95 fuel limit under Budi Madani program

A vast majority of Malaysians utilizing the Budi Madani subsidy program are consuming well below the allocated fuel limits, according to government data.

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Less than one percent of Budi Madani RON95 (BUDI95) users used more than 200 liters of petrol per month since the program was introduced from October 2025 to May.

Second Finance Minister Datuk Seri Amir Hamzah Azizan stated that less than one percent of Budi Madani RON95 (BUDI95) users consumed more than 200 liters of petrol per month from October 2025 to May. This indicates that the subsidy cap is effectively targeting those who need it most.

For diesel users, the 300-liter monthly quota under the Budi Madani program appears ample. Data from the Department of Statistics Malaysia shows that over 80 percent of diesel consumers use less than 200 liters monthly, averaging around 140 liters. The government has provided an additional 100-liter allowance for certain vehicles like SUVs, jeeps, and pickups used by small traders and rural residents.

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However, taking into account that the majority of citizens' diesel vehicles consist of sports utility vehicles (SUVs), jeeps and pickups used as primary transportation for small traders and residents in rural areas, the government provides an additional 100 liters eligibility under Budi Madani Diesel.

Amir Hamzah also highlighted the significant fiscal pressure caused by rising global crude oil prices, exacerbated by the conflict in West Asia. Malaysia's fuel subsidy expenditure surged from approximately RM800 million in January and February to nearly RM5 billion per month in March and April. He warned that despite potential peace agreements, oil prices are expected to remain elevated, increasing the strain on national finances. Addressing fuel leakage, particularly in Sabah and Sarawak where non-citizens allegedly benefit from subsidized diesel, is crucial to ensure supply continuity and manage costs.

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Subsidies for petrol and diesel around RM800 million in January and February have surged to almost RM5 billion a month in March and April.