Budi95: 300-Litre Quota Sufficient for Most Malaysians

The 300-litre monthly petrol subsidy quota under the Budi Madani RON95 (Budi95) programme is sufficient for normal personal use, said Treasury secretary-general Datuk Johan Mahmood Merican.

Citing government data, Johan said 95% of Malaysians use less than 180 litres of RON95 a month, while only 0.7% typically exceed 300 litres. 

“On average, Malaysians use about 80 litres per month. Based on current data, the quota is more than enough, though we’ll continue to monitor usage,” he told Bernama.

In the first two weeks of Oct, fewer than 0.1% of eligible Malaysians had fully used their 300 litre quota, a number Johan said was too small and too early to suggest the limit is insufficient. 

He cautioned that increasing the quota could lead to leakages or smuggling, especially in border states.

“For instance, more than 80 individuals with only motorcycle licences had already used up their 300 litres, which would mean riding over 500km daily in just two weeks,” he said.

Implemented in stages since Sept 27, Budi95 allows Malaysians aged 16 and above with a MyKad and valid driving licence to buy RON95 at RM1.99 per litre, capped at 300 litres per month. 

The system has been running smoothly, with nearly three million daily transactions and over 12 million users to date.

Johan added that the targeted subsidy approach is not merely a cost-cutting measure but part of efforts to ensure public funds are used more efficiently. 

He noted that Malaysian households account for about 78% of RON95 consumption, with the remaining 22%, roughly four billion litres annually, likely consumed by companies, foreigners, or lost to smuggling.

By narrowing subsidies to genuine household users, the government expects to save about RM2.5 billion annually, which will be channelled into development and welfare initiatives. 

Johan said such responsible fiscal management helps maintain investor confidence while supporting economic growth, jobs and income opportunities for Malaysians.