In September 2025, the Malaysian government introduced a major shift in fuel subsidy policy, the BUDI 95 programme. For the first time in modern Malaysian history, the RON 95 subsidy is no longer universal. Instead, it's targeted: only those who qualify pay the subsidised RM 1.99/litre, while everyone else pays the market rate of RM 3.82/litre.
What Is BUDI 95?
BUDI 95 stands for Bantuan Untuk Diri Individu RON 95 (Individual Assistance for RON 95). It's a targeted subsidy programme replacing the blanket subsidy system that previously gave everyone, including luxury car drivers and foreign nationals, access to subsidised fuel.
The main goal: ensure that the government's RM 20+ billion annual fuel subsidy actually reaches people who need it, not high-income groups.
Who Qualifies for BUDI 95?
Per the official criteria, eligibility is based on citizenship and a driving licence, not income. You qualify if you are:
- a Malaysian citizen holding a MyKad (identity card); and
- a holder of an active JPJ driving licence — a Competent Driving Licence (CDL), Probationary Driving Licence (PDL), or Learner's Driving Licence (LDL).
Not eligible: foreigners, foreign-registered vehicles, and company vehicles — the subsidy is for personal-use vehicles only. The subsidised price is RM 1.99/litre, capped at 200 litres a month since 1 April 2026. The government has proposed also excluding higher-income groups (T15), but this is still under review and not yet in force. (Official source: budi95.gov.my)
How Much Can You Save?
With a price gap of RM 1.83/litre, an average driver using 150 litres per month saves about RM 275/month or RM 3294/year. For a two-car family, annual savings can reach RM 6588.
How to Register for BUDI 95
- Visit the official BUDI 95 government portal
- Enter your MyKad number
- The system checks eligibility against your citizenship and JPJ driving-licence status
- If eligible, your status is shown immediately
- Use your MyKad or BUDI code at the petrol station for subsidised pricing
Why Did the Government Change the System?
Before BUDI 95, the RON 95 subsidy cost roughly RM 20 billion per year, and a significant portion was enjoyed by the T15 and foreign nationals. Government studies found that about 40% of subsidy spending went to people who didn't actually need it.
With BUDI 95, subsidies reach only eligible Malaysian citizens (not foreigners or company vehicles) and are capped per person, allowing the government to save around RM 8 billion annually that can be redirected to other assistance or deficit reduction.
BUDI 95 is the biggest subsidy reform in 20 years. Its impact varies by driver, depending on whether you qualify and how much fuel you use each month.