Govt Denies Rumours of Budi95 Quota Cut

The government has dismissed viral claims that it plans to slash the Budi95 fuel subsidy quota from 300 to 200 litres a month, calling the messages completely untrue.

Treasury secretary-general Datuk Johan Mahmood Merican, in a FMT report, said Putrajaya has no intention of revising the scheme’s quota or subsidised price anytime soon.

“The government has never said, nor have I said, that we will be reducing the quota or eligibility limit from 300 litres to 200 litres,” he told the daily news portal.

Johan explained that the current 300-litre cap was carefully set to meet Malaysians’ needs while curbing abuse. Data showed average consumption is only around 80 litres a month, but the higher cap ensures nearly all motorists are covered.

“At 180 litres, you already cover 99%. At 300 litres, it’s estimated we’re covering 99.3%,” he stated, adding that less than 0.1% of users exceeded the limit in the first few weeks.

The Budi95 programme, introduced in late Sept, aims to channel RON95 subsidies only to eligible Malaysians while preventing leakages to foreigners and businesses.

Malaysians aged 16 and above with a valid driving licence can buy up to 300 litres of RON95 a month at RM1.99 per litre. Purchases beyond that are charged at market price.

Johan said the policy also helps prevent fuel smuggling and supports those in lower- and middle-income groups who face longer daily commutes.

“We wanted to ensure that 300 litres was sufficient for them. So certainly, there’s no plans to reduce the quota from 300 to 200 being considered at this time,” he concluded.