26th September 2025 - 3 min read
The government has provided key details on the technical readiness and financial impact of the new BUDI95 targeted petrol subsidy programme, which is set to launch on 30 September 2025. Officials have assured the public that the system is built to handle a massive volume of transactions and that the initiative is projected to generate significant annual savings for the nation.
The move to rationalise RON95 petrol subsidies is a core part of the government’s strategy to manage public funds more effectively and ensure that financial aid reaches the most deserving citizens.
Prime Minister Datuk Seri Anwar Ibrahim has announced that the infrastructure for the BUDI95 system has been significantly upgraded to prevent the technical issues that affected previous subsidy rollouts. He stated that the system is capable of processing more than 30,000 transactions per minute.
The bump in capacity is more than ten times greater than that of the earlier Sumbangan Asas Rahmah (SARA) platform, which could only handle about 3,000 transactions per minute and experienced hiccups during its launch. The Prime Minister, who is also the Finance Minister, has expressed confidence that the new system is robust enough to manage the expected surge in demand during the first two weeks of its implementation.
The rationalisation of the RON95 petrol subsidy is expected to result in substantial savings for the government. According to Finance Minister II Datuk Seri Amir Hamzah Azizan, the move could save between RM2.5 billion and RM4 billion a year. He noted, however, that the exact figure would depend on prevailing global oil prices.The government has reiterated that these savings will not be lost. Instead, the funds will be redirected to enhance social support programmes for the public. This includes financing for existing schemes such as the Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah (SARA), education aid, and other direct cash assistance programmes for Malaysians who need them most.
As a brief recap, the BUDI95 initiative will offer RON95 petrol at a subsidised price of RM1.99 per litre for up to 300 litres per month. The programme is open to all Malaysian citizens aged 16 and above who possess a valid driving licence.
Verification for the subsidy will be done using the MyKad at petrol stations, either at the pump, over the counter, or through station-specific mobile apps. This method is intended to prevent leakages by ensuring that only eligible Malaysians can benefit from the subsidised price.
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As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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