2nd October 2025 - 3 min read
The Ministry of Finance (MOF) has confirmed that full-time e-hailing drivers and registered boat owners will be eligible for the Budi Madani RON95 (Budi95) petrol subsidy starting 15 October 2025. The targeted fuel subsidy is part of the government’s ongoing effort to reduce living costs while addressing subsidy leakage.
The announcement, made on 2 October, clarifies that individual applications from e-hailing drivers are not required. Instead, applications will be processed directly through registered e-hailing operators (EHOs).
To support water transport users, the government has extended Budi95 eligibility to Malaysian citizens who are registered boat owners. These individuals are not required to hold a valid driving licence.
The federal government is working with state agencies, including the Sarawak Rivers Board and the Sabah Ports and Harbours Department, to identify eligible recipients. The inclusion is aimed at assisting coastal and riverine communities that rely on boats for transport and economic activity.
Eligible recipients will continue to enjoy the subsidised RON95 petrol price of RM1.99 per litre, limited to 300 litres per month. The quota is renewed on the first day of each month.
As of 1 October, the MOF reported that the Budi95 system had recorded approximately 42.3 million litres of subsidised RON95 petrol purchased, with RM27.8 million in subsidies disbursed for that period alone.
Since its phased rollout began on 27 September, Budi95 has reached over three million users, with a total of 128.4 million litres of fuel subsidised and RM67.0 million in subsidies provided by the government.
Economists have noted that Budi95 offers both immediate and long-term benefits, particularly for lower-income households and national development goals.
Dr Adilah Azhari, senior lecturer at Universiti Utara Malaysia (UUM), said reducing subsidy leakage allows the government to redirect savings towards strategic sectors such as renewable energy and low-carbon technologies. These investments support Malaysia’s net zero emissions target under the National Climate Change Policy 2.0.
She also highlighted the role of targeted subsidies in creating a more sustainable public spending model, while increasing awareness of fairer subsidy distribution.
The MOF reiterated its commitment to implementing Budi95 in a transparent and efficient manner. It stated that monitoring will continue, and improvements will be made as needed to ensure the subsidy reaches its intended recipients.
The Budi95 subsidy scheme remains in force, with its phased expansion continuing throughout October 2025.
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Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.
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