PUTRAJAYA, Malaysia, Sept 22, 2025 – Prime Minister and Finance Minister Dato’ Seri Anwar Ibrahim today announced the implementation of a targeted subsidy system for RON95 petrol, dubbed BUDI MADANI RON95 (BUDI95), aimed at delivering direct benefits to Malaysian citizens starting September 30, 2025.
The move fulfills the MADANI government’s commitment to refine fuel subsidies, reducing the retail price of RON95 from the current RM2.05 per liter to RM1.99 per liter for eligible Malaysians. Non-citizens and ineligible individuals will pay an unsubsidized rate, estimated at around RM2.60 per liter, as determined by the Ministry of Finance.
“This is a privilege exclusively for Malaysian citizens,” Anwar said, emphasizing that all citizens with an active driving license will automatically qualify for BUDI95, regardless of income level. The program introduces a monthly subsidized fuel cap of 300 liters per person, based on Department of Statistics findings that over 99% of private vehicle drivers in Malaysia do not exceed this amount.
E-hailing drivers are exempt from the cap and can apply for additional allowances to support their livelihoods. Savings from the targeted subsidies will be redirected toward public welfare initiatives, including the Sumbangan Tunai Rahmah (STR) cash aid, Sumbangan Asas Rahmah (SARA), and improvements in healthcare, education, and basic infrastructure.
To ease adoption, no registration is required. Purchases at the subsidized rate involve a simple MyKad verification at fuel stations. MyKad readers will be available at in-store counters and pump terminals to minimize congestion, with digital options via the Touch ‘n Go (TNG) e-wallet and apps from oil companies like Petronas’ Setel and CaltexGo.
The rollout will be phased to ensure smooth implementation:
– September 27, 2025 (Saturday):Early access for 300,000 military and police personnel.
– September 28, 2025 (Sunday): Opened to STR recipients in the B40 income group.
– September 30, 2025 (Tuesday): Available to all 16 million Malaysian citizens aged 16 and above with a valid MyKad and active driving license.
Citizens are advised to verify that their MyKad chip is functional and their driving license is valid before the transition. Those who have successfully redeemed SARA or Penghargaan SARA aid can assume their MyKad is operational, with no need for rushed renewals.
The Ministry of Finance will release further details as needed and urges the public to refer to official channels for accurate information.