By Thanesh Veeramutu
KUALA LUMPUR, 23 September 2025: The Malaysian government has confirmed the full details of its new targeted fuel subsidy, announcing that all Malaysian citizens with a valid MyKad and driving licence will be eligible for a monthly quota of subsidised RON95 petrol at a fixed price of RM1.99 per litre. This marks a significant shift from earlier proposals that considered a tiered, income-based system.
Prime Minister Datuk Seri Anwar Ibrahim stated that the new scheme, officially named “Budi95,” will take effect for the general public on September 30, 2025. The move is a gesture of appreciation for all citizens and is designed to ensure a more equitable distribution of government aid. Under the new policy, non-citizens and large companies will not be eligible for the subsidy and will be required to pay the full market price, estimated to be around RM2.60 per litre.
Each eligible individual will be allotted a monthly quota of 300 litres of subsidized fuel. Anwar noted this amount is based on the average consumption of most drivers. For those in the gig economy, such as e-hailing drivers, a larger, separate limit will be announced later. The verification process has been streamlined to use MyKad readers installed at petrol station pumps and counters. Digital alternatives, including the Touch ‘n Go eWallet and various petrol company apps like Setel, will also be integrated into the system for a seamless experience.
To ensure a smooth nationwide transition and avoid congestion, the rollout will be implemented in phases. Members of the armed forces and police will be the first to benefit from the new price on September 27, followed by Sumbangan Tunai Rahmah (STR) recipients on September 28. The final phase, which includes all other eligible Malaysians, will begin on the official launch date. The Ministry of Finance and the Ministry of Domestic Trade and Cost of Living have urged the public to ensure their MyKad chips are functioning and their driving licenses are active to prevent any delays in accessing the subsidy.
