BUDI95: 300 Litres Sufficient For Normal Use -- Treasury Sec-gen
By Anas Abu Hassan
PUTRAJAYA, Oct 19 (Bernama) -- Based on the government data, the 300-litre petrol subsidy quota provided under the BUDI MADANI RON95 (BUDI95) programme is sufficient for normal personal use, said Treasury secretary-general Datuk Johan Mahmood Merican.
Johan highlighted that according to the data, 95 per cent of Malaysians use less than 180 litres per month -- when the government set the limit of subsidised petrol at 300 litres per month, the statistical data suggest that less than 0.7 per cent of Malaysians would use more than 300 litres for personal consumption.
“Actually, individual Malaysians only use an average of around 80 litres per month. As of now, the data that we have shows (the quota) is sufficient, but we will continue to monitor the situation," he told Bernama in an exclusive interview recently.
Based on actual BUDI95 consumption data in the first two weeks of October 2025, less than 0.1 per cent of eligible Malaysians had fully utilised their 300-litre subsidy quota.
This number, he said, is still too small and too early to suggest that the 300-litre quota was insufficient.
Johan also warned that an increased quota might open up room for more leakages of the subsidised petrol, such as smuggling activity by local people.
“When analysed, those who had fully utilised their quota already included those filling up in border states.
“Out of those who have utilised the 300 litres, there were more than eighty individuals who, despite only holding a motorcycle license, had already finished their 300 litres quota -- which implied that they were using their motorcycles more than 500km every day in these first two weeks of October,” Johan explained.
BUDI95 has been implemented in stages since 27 September, with Malaysians aged 16 and above who have a MyKad and an active driving licence eligible to enjoy the RON95 petrol subsidy at RM1.99 per litre, with an eligibility limit of up to 300 litres per month.
In addition, Johan noted that the BUDI95 system is performing well to date, as on a daily average, there were close to three million transactions per day, and more than 12 million Malaysians have already bought RON95 petrol at RM1.99 per litre using BUDI95.
Savings go to development spending and people's well-being
In the meantime, Johan emphasised that the government will channel the estimated RM2.5 billion in fiscal savings from the rationalisation of the RON95 fuel subsidy under the BUDI95 programme towards development spending and welfare initiatives.
He said the targeted subsidy approach adopted by the government is not merely a cost-cutting exercise, but is to ensure that public funds are used more efficiently to meet the country’s development priorities.
Explaining further, he noted that Malaysian households account for only about 78 per cent of RON95 consumption, based on data gathered by the Department of Statistics Malaysia.
“Out of 18 billion litres that are consumed yearly, there are close to four billion litres that are not consumed by households, presumably either by companies, foreigners or maybe some portion that gets smuggled around.
“So, it is this 20 per cent that we will achieve savings from. Then, if we take 20 per cent of the RM20 billion subsidy for RON95 that the government incurred in 2023 and 2024, you get about RM4 billion savings based on higher oil prices,” he said.
Hence, with the total savings based on the current market price of oil this year around US$60 per barrel (US$1=RM4.23), the government is expected to save around RM2.5 billion in annual terms.
Johan said the targeted subsidy approach will eventually show that the government is exercising responsible fiscal management, which will certainly help provide confidence for investors.
“Hence, the government is balancing between responsible fiscal management and ensuring that there is sufficient fiscal support to the economy, in order to support the momentum of economic growth, generate business opportunities and help provide jobs and income opportunities for the rakyat,” he added.
-- BERNAMA