Kuala lumpur: The 300-litre petrol subsidy quota provided under the BUDI MADANI RON95 (BUDI95) programme is sufficient for normal personal use, according to Treasury secretary-general Datuk Johan Mahmood Merican. Based on government data, 95 percent of Malaysians use less than 180 litres per month, suggesting that only a small fraction would exceed the 300-litre limit.
According to BERNAMA News Agency, Johan noted that individual Malaysians average around 80 litres of petrol per month, indicating that the 300-litre quota is adequate. Monitoring of the BUDI95 consumption data from the first two weeks of October 2025 shows that less than 0.1 percent of eligible users fully utilised their quota, which Johan stated is too small to suggest inadequacy.
Further analysis by Johan revealed potential risks of increasing the quota, such as increased smuggling activity. He highlighted cases where individuals, particularly those in border states and motorcycle license holders, had exhausted their quotas, implying excess
ive daily usage.
BUDI95 was implemented in stages from September 27, allowing Malaysians aged 16 and above with a MyKad and an active driving licence to access the RON95 petrol subsidy at RM1.99 per litre, capped at 300 litres monthly. Johan reported that over 12 million Malaysians have engaged with the system, averaging close to three million transactions daily.
The government aims to redirect an estimated RM2.5 billion in savings from the BUDI95 subsidy rationalisation towards development and welfare initiatives. Johan emphasized that this targeted subsidy approach ensures efficient use of public funds for development priorities, moving beyond mere cost-cutting.
Department of Statistics Malaysia data indicate that Malaysian households consume 78 percent of RON95 petrol. Johan explained that the remaining 20 percent, not consumed by households, represents potential savings. The subsidy rationalisation could save the government approximately RM4 billion, based on recent oil prices.
Johan assured that resp
onsible fiscal management through targeted subsidies would enhance investor confidence while supporting economic growth and providing job opportunities. The government balances fiscal responsibility with adequate economic support to maintain growth momentum and support the rakyat.