Mixed reactions as Budi95 fuel quota cut from 300 to 200 litres

KUCHING (March 27): The temporary reduction of the Budi Madani RON95 (Budi95) petrol quota from 300 litres to 200 litres per month has drawn mixed public reactions, with some describing it as a necessary fiscal move while others expressed concern over rising living costs.

The adjustment, announced by Prime Minister Datuk Seri Anwar Ibrahim on Thursday, comes amid global oil price volatility.

Research associate Ivan Alexander Ong viewed the move as reflecting current economic realities as the government faced rising subsidy costs driven by global oil prices.

He described it as ‘the most practical middle path’, noting that most Malaysians using less than 200 litres a month would not be affected.

“It’s a responsible, targeted adjustment that protects the ‘rakyat’ (people) without completely removing the subsidy or allowing the fiscal burden to spiral,” he said.

He added that the policy remained equitable as targeted groups such as e-hailing drivers continued to receive higher quotas, while others might still purchase fuel beyond the limit at market price.

“This is targeted subsidy reform done right.

“It protects the vulnerable while asking heavier users to share more of the burden caused by global events beyond our control,” he added.

He also noted that the government continued to provide support by maintaining the subsidised price at RM1.99 per litre, while absorbing rising subsidy costs.

Executive Arief Ferdaus said the reduction appeared to be a gradual step towards easing the subsidy burden amid global supply disruptions.

He also said it reflected government response to oil supply concerns following geopolitical tensions, including the closure of the Hormuz Strait.

While acknowledging targeted exemptions, he said regular commuters might still feel the financial strain.

“The average person commuting to work may feel the pinch,” he said, adding that incentives for public transport and work-from-home arrangements could be considered.

He described the timing as a ‘reactive measure to an unexpected global conflict’.

Sales administrator Denise Alexie Raymond said she was not directly affected due to short commuting distances, but raised concern for long-distance travellers.

She said those exceeding the 200-litre limit would face higher costs, which could eventually spill over into prices of goods and services.

“Sometime soon, the impact will be felt,” she said, adding that stagnant wages could worsen financial pressure on households.

She said the policy might be acceptable in the short term, but should not be prolonged, warning of potential inflationary pressure if maintained.

Sales and marketing executive Fiffie Emilly said the reduction would have a more immediate impact on daily expenses.

“If usage exceeds the limit, we will have to top up from our own pockets,” she said.

She added that higher fuel costs could indirectly push up prices of goods and services and increase pressure on households.

“Daily movement will need more planning, and in some cases, it can affect income,” she said.

She also described the timing as ‘less suitable’ given global uncertainties in oil markets, adding that fluctuating fuel prices could further burden consumers.