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Malaysia Projects At Least RM2.5 Billion In 2026 Savings From Budi95 Fuel Reform

Officials credit MyKad pump checks with a 300-litre monthly cap for curbing subsidy leakage.

Overview

  • Over 14.6 million Malaysians have accessed subsidised RON95 under Budi95 as of Feb 11, with about 3.1 million transactions processed daily.
  • Subsidised RON95 remains RM1.99 per litre for citizens with a 300-litre monthly limit validated by MyKad at the pump.
  • Prime Minister Anwar Ibrahim says the cap is sufficient, citing data showing average use below 100 litres monthly and 90% of users consuming under 200 litres.
  • Projected 2026 savings of at least RM2.5 billion are tied to reduced leakage and remain sensitive to crude prices and exchange rates.
  • Eligibility changes require foreigners with Malaysia-registered vehicles to pay the unsubsidised RON95 price (~RM2.60) and foreign-registered cars to use RON97 (~RM3.10), with enforcement highlighted by a January fine in Johor; cumulative savings since launch reached RM800 million by December.