Malaysia PM Announces Cut to Subsidised Fuel Quota from 1 April 2026

Jakarta, CNBC Indonesia - Malaysian Prime Minister Datuk Seri Anwar Ibrahim has just announced a strategic policy taken by the Malaysian Government in facing the risks of the impact of the Middle East War on energy supplies in the neighbouring country.

PM Anwar Ibrahim stated that the government will lower the quota for subsidised fuel of the RON 95 petrol type or Budi95 to 200 litres per month starting 1 April 2026.

Previously, the quota for subsidised RON 95 petrol was set at 300 litres per month.

However, the price of subsidised RON 95 petrol remains unchanged, still priced at RM 1.99 per litre or equivalent to Rp 8,423 per litre (assuming Rp 4,232 per Malaysian Ringgit).

“All countries, especially neighbouring countries, are raising oil prices, but Malaysia has decided to maintain the Budi95 oil price at RM1.99. We know that this has provided many benefits to the public and we also have to take some additional steps,” Anwar explained through a broadcast aired online, quoted from The Star, Thursday (26/3/2026).

“Therefore, we are checking whether the use of Budi95 is sufficient. We found that the average use of Budi95 is around 100 litres,” he said.

“This means the majority of the public only uses 100 litres per month, and nearly 90% of the public uses less than 200 litres per month, so they will not be affected,” he stated in a special speech broadcast live today.

Following up on these findings, Anwar said the government will adjust the Budi95 requirements from 300 litres per month to 200 litres per month starting 1 April.

“This step is of course temporary, pending the recovery of the oil situation, oil supply, and the world economy, but there are no signs of such recovery yet,” he added.

“So to ease the burden on the public, I emphasise that Budi95 will remain at RM1.99 per litre,” he stressed.