Malaysians will soon be paying RM1.99 (USD0.43) per litre for RON95 petrol under the new BUDI Madani RON95 (BUDI95) subsidy scheme. The nationwide rollout begins on 30 September 2025, bringing cheaper fuel to all eligible citizens.
There’s a monthly quota of 300 litres per person, but no restrictions on how many times a day you can fill up. The government says MyKad verification at the pump will keep track of usage and stop abuse without limiting ordinary drivers.
Here’s how the scheme will work, who qualifies, and what to expect once it goes live.
MyKad at the Pump
The centrepiece of the scheme is MyKad. At participating petrol stations, motorists will be required to insert their MyKad into a pump terminal before refuelling. The system then verifies eligibility and deducts from the user’s monthly subsidised quota of 300 litres.
Those with damaged MyKad chips are being urged to replace their cards, with replacements available for free. Without a working MyKad, motorists will not be able to access the subsidised rate.
The government has described this identity-linked system as key to curbing misuse, with Finance Ministry data showing that more than 20% of subsidised RON95 is currently consumed by foreigners, businesses, or through smuggling.
No Daily Refuelling Limit
Finance Minister II Datuk Seri Amir Hamzah Azizan has confirmed that Malaysians will not face daily restrictions on how many times they can refuel. Instead, authorities will monitor abnormal activity using backend analytics.
“You can refill as many times as you want. What we are looking at is unusual behaviour and people trying to abuse the system by topping up repeatedly in a short span and reselling fuel,” he said.
If flagged, transactions linked to a suspicious MyKad may be temporarily halted until further checks are completed.
Who Qualifies
The subsidised price is open to all Malaysian citizens with a valid MyKad and driving licence. Each person is entitled to 300 litres per month under the RM1.99 per litre rate.
Exceptions are made for e-hailing drivers, who can apply for larger quotas given their higher fuel consumption.
Foreigners remain excluded from the scheme. They may purchase RON95 only if driving a Malaysian-registered vehicle, at the unsubsidised price of RM2.60 per litre. Foreign-registered vehicles, such as those from Singapore or Thailand, remain restricted to RON97.
Digital Options via eWallets
To cut down on counter queues, the government has also enabled digital integration. Malaysians can pre-purchase subsidised fuel through TNG eWallet’s BUDI95 mini-app, Setel by Petronas, and CaltexGO by Caltex—generating QR codes or activating pumps without producing MyKad at every visit.
These apps also display remaining subsidised quotas and eligibility status. However, eWallet users must first complete electronic Know Your Customer (eKYC) verification, which requires a MyKad scan and selfie for account validation.
Rollout Timeline
The BUDI95 scheme will be introduced in phases ahead of its full launch:
- 27 September 2025 – Early access for police and military personnel
- 28 September 2025 – Early access for B40 households receiving Sumbangan Tunai Rahmah (STR)
- 30 September 2025 – Nationwide rollout for all eligible Malaysians
The initiative represents a major shift in how subsidies are distributed, moving from blanket price controls to a more identity-based model.
With an annual subsidy bill nearing RM20 billion, the government hopes BUDI95 will better target assistance at Malaysian citizens while reducing losses to smuggling and misuse. For motorists, the most immediate change will be ensuring their MyKad is functional before the scheme comes into force.
