Govt Rules Out Tiered RON95 Pricing After 300 litres

The government has no plans to introduce a second-tier price of RM2.10 or RM2.30 for RON95 once a user has reached the 300-litre monthly limit under the Budi Madani RON95 (BUDI95) subsidy scheme. 

According to Finance Minister II Datuk Seri Amir Hamzah Azizan, such a system would create inefficiencies, open the door to abuse, and fail to strengthen the country’s fiscal position.

Speaking in the Dewan Negara, Amir explained that the existing structure which is RM1.99 per litre for the first 300 litres and a floating market price of RM2.60 thereafter offers clearer control and reduces the likelihood of leakages. 

"The ministry is focused on maintaining a targeted, sustainable subsidy mechanism rather than complicating the system with multiple price tiers," he said. 

Data gathered since BUDI95 took effect shows that private vehicle owners are currently consuming far below the allocated threshold, averaging just 98 litres per month.

"This represents only one-third of the 300-litre quota. Individualised adjustments would be nearly impossible to manage with 14 million Malaysians under the programme," the minister added.

Amir noted that constantly tweaking personalised limits such as setting 301 litres for one person and 350 litres for another would create an administrative burden with no meaningful benefit. 

Instead, the government will continue monitoring fuel consumption trends and will reassess the quota and structure after a full year of data is available.

"Any refinements to the BUDI95 framework will prioritise strengthening fiscal resilience while ensuring that subsidies continue reaching the intended group without wastage," he concluded.