KOTA KINABALU, Sabah – Sep 29, 2025 – The Ministry of Domestic Trade and Cost of Living (KPDN) has emphasized that the Subsidized Petrol Control System (SKPS) and BUDI MADANI RON95 (BUDI95) initiatives are key strategies in curbing long-standing fuel subsidy leakages, while enhancing agile enforcement in line with the government’s digital enforcement agenda.
In a media statement released today, KPDN Minister, Datuk Armizan Mohd Ali highlighted how these systems not only improve targeted subsidy delivery to citizens but also integrate risk management and digital enforcement elements. “Through SKPS and BUDI95, all sales and purchase transactions—from oil companies and petrol stations to corporate and individual users—will be recorded digitally,” the statement explained.
Corporate users under SKPS will utilize fleet cards, while individuals under BUDI95 will use their MyKad for purchases. This setup enables real-time monitoring and swift action against suspicious activities, such as repeated or unusually large purchases. The system aims to eliminate manipulation in the supply chain, including at petrol stations, which has been a common tactic in smuggling and diversion operations.
The full nationwide rollout of targeted RON95 petrol subsidies is set for September 30, 2025. KPDN will collaborate closely with the Ministry of Finance, the system owner, to detect any dubious transactions. The ministry warned all parties of their responsibilities in using fleet cards, MyKad, and other approved methods to access subsidies.
“KPDN stresses that strict action will be taken against any party found guilty of manipulation, diversion, or smuggling of RON95 petrol under the Supply Control Act 1961 [Act 122] and existing regulations,” the statement read. Individuals convicted could face fines up to RM1,000,000 or imprisonment not exceeding three years, or both. Companies could be fined up to RM2,000,000.
The pilot implementation of BUDI95, which began on September 27 and 28, 2025, has proceeded smoothly. On the second day (September 28), 27,916 users in Sabah benefited from the subsidy, purchasing fuel at a reduced retail pump price of RM1.99 per liter. The full rollout is expected to benefit 16 million adult Malaysians.
Currently, the pilot targets two categories: security personnel and recipients of the Sumbangan Tunai RAHMAH (STR) cash aid program.
This initiative underscores the government’s commitment to ensuring subsidies reach intended beneficiaries, holding all stakeholders accountable for the substantial allocations provided for fuel subsidies.