Prime Minister Dato’ Seri Anwar Ibrahim today confirmed that the targeted subsidy for RON95 petrol, called BUDI95, will be introduced at the end of this month, September 30, 2025. The price of RON95 petrol will be set at a ceiling price of RM1.99, where he also gave a brief overview of how this subsidy will be implemented.
First, the BUDI95 targeted subsidy will be available to all Malaysians with a valid car and motorcycle driving license, and will be set at RM1.99, which can be used to fill up to 300 liters per month.
If the amount of petrol filled exceeds the limit, vehicle owners will have to pay the current market price for it. It was also confirmed that this 300 liter limit will not be carried over to the next month, and will be reset every month.
Without this targeted subsidy, the market price of RON95 petrol will be floated at RM2.60, or the current market price, while the price of RON97 petrol will also remain at the current market price of RM3.21. This is also the price that foreign vehicles entering Malaysia and wanting to fill up with petrol will have to pay.
He also said that e-hailing drivers will be exempted from the 300-litre filling limit and can apply for additional qualifications to continue their employment.
Malaysians also do not need to register any details because the subsidy verification process uses the details on the existing MyKad identity card which will be verified through in-store terminals at petrol stations and also at petrol pump terminals which will be implemented in the near future.
Meanwhile, users of digital wallets such as Touch’n’Go and petrol station applications such as Setel by Petronas and CaltexGo can also be used to pay for fuel with this subsidy. Users only need to verify their identity through the built-in eKYC system to obtain the subsidized price.
The government also said that they will introduce the BUDI95 program to two groups a few days before the official launch. On September 27, the BUDI95 subsidy program will be introduced to the police and military first. While on September 28, the program will be introduced to those who are under the existing Sumbang Tunai Rahmah program.
Then on September 30, 2025, the BUDI95 program will be introduced to about 16 million Malaysian citizens aged 16 and above who have a MyKad identity card and a valid driver's license.
