Budi95, diesel subsidies now at RM4bil a month – MoF

The government says that due to the rise in global crude oil prices, the country is bearing petrol and diesel subsidies estimated at up to RM4 billion a month under the Budi95 and Budi Diesel programmes. With crude oil prices now exceeding USD100 per barrel, the country’s subsidy burden has also significantly increased, the finance ministry said.

“Based on market prices two weeks ago, when Brent crude was around USD90 per barrel, petrol and diesel subsidies were estimated at RM3 billion per month. Now, with crude oil prices reaching USD100 per barrel, the subsidy bill is estimated to rise to around RM4 billion per month,” the ministry said in a statement issued last night.

This comes following prime minister Datuk Seri Anwar Ibrahim’s announcement that the 300 litre monthly quota for RON 95 petrol under the Budi Madani RON 95 fuel subsidy programme will be temporarily adjusted to 200 litres a month effective April 1, 2026, at the same subsidised rate of RM1.99 per litre. Anwar, who is also finance minister, reiterated that 90% of RON 95 petrol users will not be affected by the reduced quota.

The ministry said the government had taken early and targeted measures to ensure the country’s fuel supply remains secure amid global supply uncertainties arising from the conflict. It said that these proactive measures were being implemented in a planned manner to manage current supply pressures without affecting the majority of consumers, while ensuring sufficient fuel supply for a longer period, as Bernama reports.

“Although the country’s fuel supply remains under control for now, the government cannot adopt a wait-and-see approach in strengthening supply security and managing demand prudently,” the statement said.

The ministry said the adjustment to the Budi95 eligibility cap is a temporary measure until global supply conditions stabilise. “The adjustment takes into account that nearly 90% of eligible users consume less than 200 litres per month and will not be affected, with average monthly consumption at around 100 litres,” it said.

The ministry added that authorities will also continue to strengthen enforcement to curb misuse and leakages of subsidies, and not hesitate to suspend Budi95 eligibility in cases of abuse or misuse of subsidised RON 95.

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