8th January 2026 - 3 min read
The government will not reduce the Budi Madani RON95 (Budi95) fuel subsidy quota based on income classification, as it aims to avoid placing additional pressure on household spending.
Treasury Secretary-General Datuk Johan Mahmood Merican said the current priority is to assess how the programme is performing before making any adjustments.
He explained that Budi95 represents a significant policy shift, and the government does not want to introduce rapid changes while Malaysians are still adjusting to the new system.
According to Johan Mahmood, the government is analysing data collected since the launch of the Budi95 programme to assess its effectiveness and identify any unusual patterns of use. Any potential changes to the scheme would only be considered after this review is completed.
He said the focus is on understanding how the subsidy is being used rather than revising eligibility rules in the short term. Early usage data suggests that current consumption patterns are already well within the existing limits.
Government data shows that the current 300-litre monthly quota is more than sufficient for most eligible users. On average, Budi95 recipients consume around 83 litres per month, while about 90% of users consume less than 200 litres monthly.
For households, this suggests that the existing quota comfortably covers typical commuting and daily driving needs, reducing the likelihood of out-of-pocket fuel costs under normal usage.
Johan Mahmood also clarified that the government is not planning to introduce a more targeted subsidy structure based on income levels at this stage. Proposals to exclude higher-income earners from the subsidy are not being considered for now.
Instead, the government’s immediate priority is to reduce leakages, particularly from foreign users or businesses that may be misusing subsidised fuel, and ensure that the subsidy benefits more Malaysians.
For consumers, the current approach provides stability and predictability in fuel expenses. Eligible drivers can continue to rely on the existing Budi95 quota without worrying about sudden changes tied to income or consumption levels.
As the programme remains in force without immediate revisions, households can make everyday budgeting and commuting decisions with greater confidence, while the government continues to refine the system behind the scenes to improve efficiency and reduce misuse.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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