BUDI95 quota cut to 200 litres from April 1, price stays at RM1.99

Anwar speaks during a special address broadcast live by RTM on March 26, 2026.

By Shikin Louis

KUCHING, March 26: The monthly subsidised fuel quota under Malaysia’s BUDI95 programme will be reduced from 300 litres to 200 litres beginning April 1, 2026.

Prime Minister Datuk Seri Anwar Ibrahim said the move is part of Putrajaya’s efforts to safeguard fuel supplies amid escalating tensions in the Middle East.

“We found that the average usage of BUDI95 is around 100 litres, meaning the majority of rakyat only use about 100 litres per month, and nearly 90 per cent consume less than 200 litres monthly. Therefore, most will not be affected.

“As such, the government will adjust the BUDI95 eligibility from 300 litres per month to 200 litres per month, effective April 1, 2026,” he said in a special address broadcast live by RTM today.

Despite the adjustment, he stressed that the RON95 subsidised price will remain unchanged at RM1.99 per litre.

To cushion the impact on key workers, Anwar said the government will maintain a higher quota ceiling of up to 800 litres monthly for e-hailing drivers and gig workers.

The announcement comes amid heightened tensions in the Middle East involving Iran and Israel, which have disrupted global oil and gas supply chains, including risks linked to the Strait of Hormuz.

In addition, Anwar stated that Sabah and Sarawak will continue to receive diesel subsidies at RM2.15 per litre, taking into account logistical challenges in both States.

However, tighter controls will be enforced to curb leakages and smuggling. Effective immediately, limits will be imposed on diesel purchases per transaction:

• 50 litres for light vehicles
• 100 litres for vehicles below three tonnes
• 150 litres for vehicles above three tonnes

“These measures are necessary to ensure fair distribution and prevent hoarding and smuggling, which have resulted in losses amounting to hundreds of millions of ringgit monthly,” he stressed.

Anwar also revealed that the government is considering additional steps, including more flexible work arrangements such as working from home.

“Civil servants will be allowed, in stages and selectively, to work from home, and we encourage the private sector to adopt similar measures,” he said.

Despite global headwinds, he said Malaysia’s economic position remains relatively strong, supported by the capabilities of Petroliam Nasional Berhad (PETRONAS) and continued investor confidence.

He urged Malaysians to remain patient and cooperative, saying the measures are carefully calibrated to balance public welfare with fiscal responsibility. – DayakDaily