Fuel Subsidy Update: Your 300L Monthly Quota Could Drop to 200L This April

If you rely on subsidised RON95 petrol to get to work, take note: a major change is coming to your monthly fuel budget.

Following the massive jump in market petrol prices this week, reports suggest the Government is planning to reduce the BUDI95 monthly limit. Instead of the 300 litres you currently get at RM1.99/litre, the quota is expected to drop to 200 litres starting in April.

Read: Fuel Price Shock: Diesel Spikes to RM5.52, Unsubsidised RON95 Jumps 60 Sen

The "Price Gap" Explained

Why does this 100-litre difference matter? Because once you hit your 200L limit, you stop paying the "cheap" price and start paying the "market" price.

Starting Thursday, March 26, that market price is jumping to RM3.87 per litre. That is a huge RM1.88 difference for every single litre you pump over your limit.

How Much More Will You Pay?

If you are a heavy driver who usually uses the full 300 litres every month, here is how your monthly bill will change under the new 200L rule:

The Bottom Line: If you drive a lot, you could be looking at an extra RM188 per month in fuel costs just by losing those 100 subsidised litres.

Why Is This Happening?

It all comes down to the war in the Middle East. Even though global oil prices have cooled down slightly to around US$94 per barrel, the "shockwaves" from earlier this month are still hitting our local petrol stations.

Prime Minister Datuk Seri Anwar Ibrahim recently warned that the country’s fuel subsidy bill could reach RM24 billion this year. To keep the economy stable, the Government has to move from "giving to everyone" to "giving just enough."

Who Will This Hit the Hardest?

The good news is that about 9 out of 10 Malaysians actually use less than 200 litres a month. If you only drive short distances to the office or the grocery store, you likely won't feel any difference.

However, you will need to plan ahead if you are:

• A Long-Distance Commuter: Driving between states (like Seremban to KL) daily.
• A Large Family Owner: Driving heavy MPVs that drink more fuel.

Survival Tips

• Track Your Quota: Use the Setel app or check the Budi Madani portal to see exactly how many litres you have left. Don't get "surprised" by the RM3.87 price at the end of the month.
• Lighten the Load: Clean out your trunk. Extra weight = extra fuel burned. Every litre counts now.
• Check Your Tires: Under-inflated tires make your engine work harder, eating into your 200L quota faster than necessary.

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Sources: The Edge Malaysia