Rising tensions in the Middle East are beginning to put pressure on global oil prices, and this could soon impact Malaysia’s fuel subsidy policy. Reports suggest the government is considering reducing the monthly quota for subsidised RON95 petrol under the Budi95 programme.
Currently set at 300 litres per month, the subsidised limit may be lowered to 200 litres. The adjustment is expected to be announced soon and could take effect as early as April. Once motorists exceed the new quota, they would need to pay the higher market price for RON95.
This potential move is seen as part of the government’s effort to control rising subsidy costs while ensuring support continues for most users. With global crude oil prices staying high due to ongoing conflicts, maintaining the current subsidy level has become increasingly difficult.
Earlier, the government indicated that fuel subsidies could cost the country up to RM24 billion if oil prices remain elevated. Although prices have eased slightly, they are still much higher than before the conflict.
Despite the proposed change, most Malaysians are unlikely to be affected. Data shows the average monthly fuel usage is well below 200 litres, with around 90% of users consuming less than the proposed new quota.
Indonesia