The government will restore the basic monthly Budi Madani RON95 (Budi95) quota from 200 litres to 300 litres starting 1 September, benefiting more than 16 million eligible motorists across Malaysia.
Prime Minister Datuk Seri Anwar Ibrahim made the announcement during his National Day 2026 address at the Putrajaya International Convention Centre on 30 August, The Star reported. The decision effectively reverses a temporary cut imposed on 1 April, when the government trimmed the quota from 300 litres to 200 litres, citing the need to optimise subsidy distribution and curb misuse.
Under the Budi95 scheme, Malaysian citizens with a valid driving licence pay RM1.99 per litre for RON95 petrol, well below the prevailing unsubsidised price of RM3.82 per litre. The 300-litre monthly ceiling was the original threshold when the targeted subsidy programme launched in September 2025, paultan.org noted.
Diesel vehicle owners also stand to gain. More than 500,000 eligible owners of pick-up trucks and jeeps will see their Budi Diesel entitlement rise from 300 litres to 400 litres per month. The subsidised diesel price remains at RM2.10 per litre, compared to the unsubsidised rate of RM4.72 per litre.
The Budi Diesel base quota is not a separate allocation. It shares the same pool as Budi95, meaning the increase from 200 to 300 litres applies to both fuels collectively. On top of that base, approved pick-up truck and jeep owners who applied for an additional 100 litres will now have their ceiling raised to 400 litres, the Finance Ministry confirmed previously.
At the time of the April reduction, the government said about 90 per cent of Malaysian vehicle owners consumed roughly 100 litres of fuel per month, well within the reduced 200-litre threshold. However, the cut drew criticism from motorists who commuted long distances daily, particularly in East Malaysia where public transport options are limited. Some e-hailing drivers also reported that 200 litres was insufficient for their daily operations.
Anwar said the adjustment was part of the government’s efforts to ease the financial burden on Malaysians while ensuring targeted subsidies continued to reach those who qualified. The announcement came alongside several other measures unveiled during the National Day address, including a RM200 million grant for hawkers and small traders and an increase in the e-Invoice exemption threshold from RM1 million to RM3 million.
