RON95 subsidy under BUDI95
For most Malaysian motorists, the daily commute is more than just traveling from one point to another. We have to budget in monthly petrol costs for our vehicles, which we rely on every day. To help ease the cost of travel for Malaysians, the Malaysian government has introduced BUDI95, a subsidy programme intended to lighten the load on Malaysian drivers by making RON95 grade petrol more affordable.
Here’s everything that you need to know about it:
Table of Contents
What is BUDI95?
BUDI95, short for BUDI MADANI RON95, is a government initiative announced by Prime Minister Datuk Seri Anwar Ibrahim on 22nd September 2025.
It aims to sustain reduced fuel prices for locals who rely on a vehicle for their daily activities, with RON95 grade petrol offered at a rate of RM1.99 per litre, down from RM2.05 per litre, under the scheme.
Prime Minister Anwar has referred to BUDI95 as a “benefit and privilege” aligned with the spirit of Merdeka Day and Malaysia Day. Over 16 million Malaysians are expected to benefit from the petrol subsidy based on data provided by the Road Transport Department (JPJ) and the National Registration Department (JPN).
Who is eligible for the petrol subsidy?
Many Malaysians have been scratching their heads, wondering who are actually qualified for BUDI95. This comes after several updates from the Malaysian government, which initially announced that the targeted subsidy would consider the income of Malaysian citizens.
On 22nd September, Prime Minister Anwar clarified that all Malaysian citizens aged 16 years old and above will qualify for the petrol subsidy – regardless of their income bracket – in “recognition of the people of Malaysia”, as he shared in a Facebook post.
What are the conditions for the RON95 subsidy?
While all Malaysians can enjoy reduced RON95 prices, there are certain conditions in place. First, you must possess a MyKad with a working chip and a valid driving license. Secondly, you can only pump subsidised RON95 for a vehicle that’s for personal use.
If you’re an e-hailing driver, you may also enjoy the subsidised price for RON95.
In other words, non-citizens and vehicles used by large companies will not be eligible for the subsidy. The non-subsidised price for RON95 vehicles will be maintained at RM2.60 per litre for these motorists.
Likewise, foreign-registered vehicles owned by Malaysians can only utilise RON97 petrol, and not RON95 at the subsidised price. So, for example, if a MyKad holder has their vehicle registered in Singapore or Thailand, they won’t be able to refuel with RON95 at the subsidised price.
When does BUDI95 start?
BUDI95 is slated to go into effect on 30th September. From this date onwards, eligible citizens can purchase RON95 petrol at the adjusted subsidised price from petrol stations nationwide.
Meanwhile, these individuals can begin pumping petrol ahead of the nationwide rollout:
- Police and military personnel on 27th September
- B40 group under the Rahmah Cash Contribution (STR) scheme on 28th September
Is there a cap on refueling?
To curb misuse, the Malaysian government has set a limit on the amount of subsidised fuel under the BUDI95 initiative. Each vehicle and MyKad holder is permitted a specified monthly allowance of subsidised fuel: up to 300 litres per private vehicle, per month.
According to the Department of Statistics, and cited in a press release published by the Ministry of Finance, this limit exceeds the current average monthly consumption of around 250 litres per private vehicle. It’ll accommodate Malaysians who have longer commutes.
E-hailing drivers may apply for a higher value, if needed. The government is expected to announce more details for this in the near future.
MyKad or driving license to enjoy BUDI95?
Participation in the BUDI95 scheme will require presenting a valid MyKad upon payment for petrol. No registration is needed. A driving license will not be required upon payment either, as this is just a requirement to verify your legal right to drive.
The usage of MyKad is to help eliminate the need for a new system or card, with the government ensuring security systems are in place to protect the personal data of Malaysians.
How to make a payment with MyKad?
As for how to pay for subsidised RON95 now that a MyKad is in play, eligible individuals will just need to present their MyKad upon payment at the cashier in the convenience shop of a petrol station. The card will then be verified by an attendant, similar to the MySARA cash aid.
Verification right at the petrol pump station is also possible, so you don’t need to head to the counter. There will be an additional step of inserting your MyKad into a card reader slot at a pump station, likely the same terminal for debit and credit cards, as shared in a Facebook video by Home Minister Saifuddin Nasution Ismail.
The process will look something like this: insert your MyKad into the card reader slot for verification, tap your debit or credit card for payment, then follow this with any loyalty cards you have.
Your payment receipt will also share the remainder of your quota, so you can keep track of the subsidy amount you have left.
The government also announced that verification will be possible through apps such as Touch ‘n Go, Setel, and CaltexGo. Once you’ve verified your identity on these apps – which usually requires taking a photo of the front and back of your MyKad on the app – you can proceed to use them as verification for future payments for RON95 petrol without needing to show your physical MyKad.
A guide on how to claim subsidised RON95 from 30th September
In this economy, every little sen counts. The BUDI95 subsidy programme offers financial support to all Malaysian motorists, with a familiar method of enjoying the subsidy that will hopefully not shake up our usual routine too much.
Cover image adapted from: TheSmartLocal Malaysia