Putrajaya: The return of the basic monthly Budi MADANI RON95 (BUDI95) quota to 300 litres, from the previous 200 litres, will provide households with greater flexibility in managing transportation costs, particularly those that rely heavily on private vehicles.
According to BERNAMA News Agency, economics lecturer at the Faculty of Business and Management, Universiti Teknologi MARA (UiTM) Sabah branch, Herniza Roxanne Marcus, said the benefit was expected to be more significant for lower- and middle-income groups (B40 and M40) with high travel needs, as fuel expenditure accounts for a larger share of their disposable income. She highlighted the unique challenges faced in regions like Sabah, where travel distances and limited public transport options make the increased quota especially pertinent.
Prime Minister Datuk Seri Anwar Ibrahim, when delivering the 2026 National Day address in Putrajaya today, announced that the government had agreed to restore the basic BUDI95 quota from 200 litres to 300 litres per month, benefiting more than 16 million users of subsidised RON95. Additionally, over half a million eligible owners of diesel-powered pickup trucks and jeeps would receive up to 400 litres of BUDI Diesel per month, effective September 1.
Herniza noted that while the impact of the increased BUDI95 quota is expected to be moderate and may not directly reduce the inflation rate, it could help contain transportation cost pressures and reduce the risk of spillover effects on the prices of other goods and services. She described the move as a balance between the government's fiscal capacity and the need to protect the people's welfare and purchasing power, while also noting the opportunity for the government to reassess subsidy levels based on changing risks and market conditions.
Meanwhile, journalist Rozainah Abdul Rahim, 36, expressed her relief at the quota's return, as the previous 200-litre limit was insufficient for her monthly travel needs. Frequently exceeding her quota due to daily car use for work and weekly commutes between Port Dickson, Negeri Sembilan, and Kuala Lumpur, she thanked the government for the 300-litre initiative, which she believes is crucial for coping with the current cost of living.