To Reduce Cost of Living, Malaysia Increases Subsidised Fuel Quota
The Malaysian government has increased the quota for subsidised fuel for its citizens. This policy was implemented to ease the cost-of-living pressures felt by the public amidst global oil price uncertainty.
The policy is carried out through the BUDI MADANI RON95 (BUDI95) Programme, which has raised the subsidised fuel quota to 300 litres, up from 200 litres per month, per individual eligible for the programme.
Previously, on 26 March, Malaysia had announced that the BUDI95 quota would be adjusted from 300 litres to 200 litres per month starting 1 April 2026, due to conflicts in West Asia. This new policy restores the basic monthly quota to 300 litres.
Malaysian Prime Minister Datuk Seri Anwar Ibrahim stated that the decision would benefit more than 16 million users of subsidised RON9ly5. He made this announcement during his National Day speech at the Putrajaya International Convention Centre (PICC) on Sunday (30/8/2026).
“Meanwhile, more than half a million owners of diesel-powered pickups and jeeps who are eligible will receive up to 400 litres of Budi Diesel per month,” he said, as quoted from the Malaysian News Agency, Bernama.
The price of subsidised RON95 fuel remains maintained at the level of RM1.99 per litre.
Anwar explained that the decision to increase the BUDI95 and BUDI Diesel quotas was made after considering the pressures caused by the rising cost of living, which could not wait until the presentation of the 2027 budget.
“The cost-of-living pressure will not wait until October, and the business world needs to grow now; they cannot wait until October,” he said.
According to him, the various measures implemented so far have not been sufficient to fully alleviate the difficulties faced by the public due to the rising cost of living. Therefore, additional steps are required.
“The benefits of the country’s economic growth must be returned to the people,” he said.
Furthermore, the Malaysian Finance Minister explained that the policy would take effect on 1 September as part of the government’s efforts to lighten the cost-of-living burden on the public.
“There are concerns regarding the condition of the M40 group; some say we continue to focus on the B40… but under the MADANI administration, we must attend to all parties,” he said.
He stated that petrol and diesel subsidies are a form of assistance that benefits almost all layers of society, including the M40 and T20 groups, with the costs borne by the government reaching up to RM40 billion.
M40 and T20 are classifications of society based on households in Malaysia. M40 refers to the middle-class population, and T20 refers to the high-income group.