MoF: nearly 90% of drivers use less than 200L of fuel per month, 100L average, majority B40/M40 unaffected

Under the Budi Madani programme, which includes both Budi Madani RON 95 (Budi95) and Budi Madani Diesel (Budi Diesel), eligible Malaysians are allowed to purchase up to 200 litres of subsidised RON 95 petrol and B10 or higher blends of diesel per month.

If you recall, the quota for Budi95 was originally set at 300 litres per month in September last year before it was temporarily reduced to 200 litres in March 2026. This was in response to the West Asia conflict that saw crude oil prices soar, leaving the government to foot a sizeable subsidy bill.

Recently, the ministry of finance (MoF) announced that Budi Diesel has been revised so Malaysians will get to enjoy diesel at a subsidised price of RM2.10 per litre nationwide – you can find out all about it here. The mechanics of purchasing subsidised diesel is the same as that of subsidised RON 95 petrol, but each fuel type doesn’t come with its own quota.

Instead, the 200 litres per month allocation is for both fuel types, which may have some questioning why the government isn’t increasing the quota. According to the MoF, real-world consumption data showed that nearly 90% of drivers used less than 200 litres of fuel per month, with the average being around 100 litres monthly. This was also the reason given for the reduction in quota to 200 litres.

MoF: nearly 90% of drivers use less than 200L of fuel per month, 100L average, majority B40/M40 unaffected

“This means that the majority of the rakyat, including the B40 and M40 groups, are not affected by the current eligibility limit as their fuel needs can still be fully met through purchases at subsidised prices,” the ministry said in a FAQ.

It went to say that the set quota also serves to prevent subsidies from being abused by irresponsible parties. It pointed out that cross-border syndicates exploited the previous blanket subsidy system by smuggling fuel to neighbouring counties with higher fuel prices than in Malaysia.

Additionally, companies took advantage of subsidised fuels by using them on a large scale to cover operating costs and turn a profit. With the new mechanism, subsidies can be targeted more effectively to eligible Malaysians, ensuring that the right groups benefit from them.

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