KUALA LUMPUR, May 12 — The government is considering reducing the monthly subsidised RON95 fuel quota under the BUDI95 programme from 200 litres to 150 litres.
As part of efforts to manage fuel supply and reduce subsidy leakages. Deputy Finance Minister Liew Chin Tong said consumption data showed 60 per cent of Malaysians use less than 150 litres monthly.
While 80 per cent consume below 200 litres. He said the government’s fuel subsidy bill surged from RM700 million to RM7 billion monthly.
Following escalating Middle East geopolitical tensions and rising crude oil prices. Liew described BUDI95 as a “demand management tool”.
Aimed at ensuring long-term fuel supply stability if global conflicts persist. He stressed that lower-income groups and motorcyclists would continue receiving strong subsidy protection.
Noting most motorcycle users consume only about 50 litres monthly. The government is also studying tighter subsidy eligibility involving high-income earners and foreigners.
While exploring targeted diesel subsidies for Sabah and Sarawak. In the long term, Liew said Malaysia must accelerate investments in public transport, electrification.
And compact urban planning to reduce dependence on fuel and strengthen economic resilience.
