More than 14.2 million Malaysians out of 16.7 million eligible have benefited from the Budi Madani RON95 (Budi95) targeted fuel subsidy programme, according to government data as of July 31, 2026 [1, 2, 3, 4]. Since its implementation, the programme has enabled the consumption of over 13.4 billion litres of subsidised RON95 fuel [1, 2, 3, 4].
Eligible Malaysian citizens receive subsidised RON95 at RM1.99 per litre for up to 200 litres per month through verification of their MyKad and driving licence linked to a central database [4]. Unsubsidised RON95 prices apply only to non-citizens and those not meeting Budi95 criteria, helping prevent subsidy leakages to commercial users or foreigners [1, 2, 3, 4].
Analysis of Budi95 usage from October 2025 to June 2026 shows fewer than 1% of beneficiaries consistently consume more than 200 litres per month, while average monthly consumption is about 100 litres per user [1, 2, 3, 4]. Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted that "the average monthly RON95 consumption was around 100 litres, indicating that the current monthly eligibility limit was sufficient to meet the needs of most recipients without affecting their daily travel requirements" [4].
Annual fiscal savings from the targeted subsidy are estimated between RM2.5 billion and RM4.0 billion, depending on global crude oil prices, exchange rates, and fuel consumption patterns [1, 2, 3, 4]. The government plans to channel the savings into social assistance programmes including Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), raising allocations to RM15 billion [4].
Addressing the OECD's recommendation to phase out fuel subsidies, Datuk Seri Amir Hamzah Azizan said, "We fully understand that the OECD has recommended the withdrawal of all subsidies, but we cannot do that in this country. What is important is that we provide subsidies in a targeted manner rather than making abrupt changes as suggested by the OECD" [2].
The latest data was presented during a Dewan Negara Q&A session on August 3, 2026, detailing the subsidy usage and fiscal impact of the Budi95 programme [1, 3].
