The government trimmed the monthly BUDI95 fuel quota from 300 litres to 200 because consumption data showed most Malaysians never came close to the original limit, Prime Minister Datuk Seri Anwar Ibrahim told Parliament on 15 July.
Answering Jelebu MP Datuk Seri Jalaluddin Alias, Anwar said internal tracking between October 2025 and May 2026 found fewer than 1 per cent of BUDI95 users consistently burned through more than 200 litres of RON95 in a month. The average sat at roughly 100 litres.
“The limit was determined based on BUDI95 usage data between October 2025 and May 2026, which showed that fewer than 1 per cent of BUDI95 users consistently consumed more than 200 litres of RON95. On average, RON95 consumption stood at around 100 litres per month,” he said in a parliamentary reply, as reported by Malay Mail.
The BUDI95 programme, launched in late September 2025, lets Malaysian citizens aged 16 and above with a valid driving licence buy RON95 at a subsidised RM1.99 per litre. The quota originally stood at 300 litres per month before the government reduced it effective April 2026 as a temporary response to supply pressures linked to the Middle East conflict.
Anwar, who also serves as finance minister, said the 200-litre cap still comfortably covers the daily mobility needs of the vast majority of Malaysians without touching their normal usage patterns. Nearly 90 per cent of eligible users consume less than 200 litres monthly, Free Malaysia Today previously reported.
He pointed out that many countries, including Malaysia’s neighbours, have raised fuel prices, but Putrajaya kept the subsidised RON95 price at RM1.99 per litre. Anwar acknowledged that the quota reduction has drawn criticism, telling reporters he understood the “various accusations and interpretations” but stressed every measure was carefully considered to avoid burdening the rakyat. The government has also taken targeted steps to secure the national fuel supply amid global market uncertainties.
On whether the quota could be revised upward in future, Anwar said the administration would continue monitoring BUDI95 implementation, including how well the targeting mechanism works and how it affects consumers.
“Any future improvements will be made prudently based on actual consumption data, energy market conditions and the country’s fiscal position to ensure subsidies continue to be distributed fairly, in a targeted manner and sustainably,” he said.
