Nearly 14 Million Malaysians Benefit from Budi95 Fuel Subsidy
The Malaysian government has revealed that almost 14 million Malaysians are actively enjoying RON95 petrol at RM1.99 per litre through the Budi Madani RON95 (Budi95) programme as of May 31. According to the Ministry of Finance (MoF), the number of active Budi95 users represents 85% of the 16.5 million individuals eligible for the targeted fuel subsidy scheme.
The ministry stated that the programme involved the consumption of 11.1 billion litres of fuel, with a total sales value of approximately RM22.1 billion. Out of this amount, the government bore RM11.2 billion in fuel subsidies.
The targeted subsidy mechanism is also expected to generate annual fiscal savings of between RM2.5 billion and RM4 billion, depending on factors such as global crude oil prices, exchange rates, and actual fuel consumption.
MoF noted that the current 200-litre monthly quota remains sufficient for most users, as nearly 90% of Malaysians consume less than 200 litres per month, with the average usage estimated at around 100 litres monthly. Those requiring additional fuel allocation may apply for an increased quota.
The ministry concluded that the Budi95 programme demonstrates that fuel subsidy reform can be implemented effectively, ensuring that the majority of Malaysians continue to receive assistance while reducing subsidy leakages and strengthening the country's fiscal position.
Malaysia