Prime Minister Anwar Ibrahim has announced that the monthly quota for subsidised RON95 petrol under the BUDI95 programme will be reduced from 300 litres to 200 litres as an interim measure to manage the impacts of the Middle East conflict.
The revised quota for the subsidised fuel, which remains priced at RM1.99 per litre, is expected to take effect from next month.
During a special televised address, Anwar noted that the average usage under the BUDI95 programme currently stands at approximately 100 litres per month.
Impact on the majority of consumers
The Prime Minister stated that because the majority of the population consumes around 100 litres monthly, and nearly 90 percent use less than 200 litres, most citizens will not be affected by this adjustment.
Anwar, who also serves as the finance minister, emphasised that the reduction is a temporary measure that will remain in place until there is a recovery in global oil prices, supply conditions, and the broader economy.
He appealed for public understanding and cooperation, describing these steps as necessary due to the significant international pressures currently facing the nation.
Maintaining price stability despite global pressures
The Prime Minister acknowledged that the decision might lead to various interpretations and accusations but assured the public that every measure has been carefully considered to avoid burdensome outcomes for the rakyat.
He highlighted that while many neighbouring countries have raised their fuel prices, Putrajaya has successfully maintained the subsidised price of RON95 at RM1.99 per litre.
Anwar added that while the subsidy has provided significant benefits to the people, the government is compelled to take these additional precautionary measures.
Background of the BUDI95 programme
The BUDI95 programme was first introduced at the end of September as a mechanism to ensure that RON95 petrol subsidies are directed exclusively to eligible Malaysians.
The programme was designed to curb leakages to foreigners and commercial entities that are not entitled to the subsidised rates.
Under the existing framework, Malaysian citizens aged 16 and above with a valid driving licence were previously allowed to purchase up to 300 litres of RON95 petrol per month at the subsidised rate before the new limit was announced.
About The Author
