Govt maintains Budi95 subsidy policy despite rising oil prices, says PM Anwar

Anwar speaks during 2026 Madani breaking-of-fast event held at Masjid Jamek in Kuching on March 13, 2026. Photo credit: Sarawak Public Communication Unit (UKAS)

By Shikin Louis

KUCHING, March 14: The federal government will maintain its Budi95 fuel subsidy policy despite rising global oil prices, says Prime Minister Datuk Seri Anwar Ibrahim.

He said the government has decided to keep the RON95 petrol price at RM1.99 per litre to ease the burden on the people, particularly in relation to transportation costs and the overall cost of living.

“Last year, we reduced RON95 to RM1.99, which is among the lowest in the world, with only Brunei Darussalam slightly lower than us.

“I made that decision because I did not want ordinary citizens to be burdened with high fuel prices, as it impacts daily transport and household expenses,” he said during the 2026 Madani breaking-of-fast event held at Masjid Jamek here yesterday (March 13).

BUDI95, or Budi Madani RON95, is the federal government’s targeted fuel subsidy programme that allows eligible Malaysians to purchase RON95 petrol at a subsidised price of RM1.99 per litre. Launched in 2025, the initiative aims to ensure that petrol subsidies benefit citizens directly, reduce misuse and smuggling, and ease the cost of living for ordinary households. Each eligible individual can purchase a set monthly quota, and the programme is administered via MyKad verification at petrol stations to ensure fairness and proper targeting.

Anwar also noted that global oil prices have surged to over USD 100 per barrel.

“Despite this, our current position is to maintain RON95 at RM1.99,” he stressed.

However, Anwar acknowledged that fuel subsidies place a significant financial burden on the government, with subsidies for petrol, diesel and the Budi95 programme costing about RM3.2 billion each month.

“Fuel alone costs about RM2 billion a month. If the situation continues until the end of the year, the fuel subsidy alone will reach RM24 billion,” he said.

At the same time, he called for Sarawak’s cooperation in curbing diesel smuggling, noting that lower diesel prices in Sabah and Sarawak could encourage illegal activities.

“I have asked Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg to give full cooperation to the Ministry of Domestic Trade and Cost of Living (KPDN) to curb smuggling, because diesel prices in Sabah and Sarawak are low and smuggling may increase,” he said. — DayakDaily