Kuala Lumpur, 22 December 2025* – Prime Minister Datuk Seri Anwar Ibrahim today announced that the government has managed to save RM800 million since the implementation of the BUDI MADANI RON95 (BUDI95) program began on 30 September.
In a post on social media, Anwar, who is also the Finance Minister, stated that these savings were achieved through more precise targeting of fuel subsidies, ensuring that the subsidies were only enjoyed by Malaysians.
“For more than 20 years, targeting oil subsidies has been discussed by every ruling government, but no one has had the courage and political will to implement it,” said Anwar.
He added that the MADANI Government had taken a bold step by introducing BUDI95 to stop the leakage of subsidies previously enjoyed by more than 3.5 million foreigners as well as fuel smuggling activities abroad involving tens of thousands of litres.
“The result of this courage has seen us save RM800 million so far, and each of these has been returned to the people through the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA), in addition to upgrading clinics and hospitals, improving roads and strengthening the country’s infrastructure,” he explained.
Under the BUDI95 program, all Malaysian MyKad holders aged 16 and above who have a valid driving license are eligible to purchase up to 300 litres of subsidised RON95 petrol at RM1.99 per litre per month, compared to the market price of RM2.60 per litre without subsidy.
This move is seen as the government’s effort to reduce the fiscal burden while ensuring that fuel subsidies reach those who truly need them, as well as supporting the country’s financial sustainability.
Anwar closed his address with a “Alhamdulillah” speech, expressing gratitude for the initial success of the program.
The implementation of BUDI95 is part of the government’s subsidy rationalization efforts, which is expected to generate annual savings of between RM2.5 billion and RM4 billion, depending on global oil prices.
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