The RON95 subsidy retargeting is a key piece of the government’s efforts to repair its finances after nearly three decades of budget deficits.

Summary

• Eligible Malaysians can buy RON95 petrol at subsidised rate by using MyKad for verification

• The verification process requires no prior registration

• Savings from subsidy rationalisation will be channelled to direct cash aid programmes

KUALA LUMPUR (Sept 22): The Malaysian government will provide up to 300 litres of RON95 petrol per month at RM1.99 per litre to all eligible citizens beginning on Sept 30, 2025.

Prime Minister Datuk Seri Anwar Ibrahim announced that eligible Malaysian citizens aged 16 and above can buy RON95 petrol at subsidised rate by simply using their MyKad for verification at the pump, counter, or through station apps under the new Budi95 targeted subsidy programme.

"All citizens, regardless of income level, who hold a valid driving licence, will automatically enjoy the benefits of Budi95. This is a privilege exclusively for Malaysians,” Anwar said in his official statement on Monday.

As the 300-litre monthly cap is designed for personal use, drivers for ride-hailing services are exempted from the limit and may apply for additional allocations to sustain their operations. Non-citizens will not be eligible and will pay the market price, which the government estimates at around RM2.60 per litre.

The implementation of Budi95 will be carried out in phases to ensure a smooth transition, and to prevent sudden spikes in fuel demand, according to the Ministry of Finance (MOF).

Early access to the subsidised rate will begin on Sept 27 for about 300,000 members of the police and military, followed by Sept 28 for recipients of the Sumbangan Tunai Rahmah (STR) cash aid, who are largely from the B40 income group.

The full rollout for all other citizens is scheduled for Sept 30.

The verification process requires no prior registration. MyKad terminals will be installed both at the fuel pumps and inside convenience stores at petrol stations, to facilitate quick transactions. Digital verification will also be available through Touch ‘n Go eWallet and participating station applications such as Setel by Petronas and CaltexGo.

The government has advised Malaysians to ensure that their MyKad chip and driving licence are valid before the launch, but stressed that those who have successfully redeemed other government assistance, such as Sara or Penghargaan Sara, need not rush to renew their cards as this indicates the chip is functional.

The RON95 subsidy retargeting is a key piece of the government’s efforts to repair its finances after nearly three decades of budget deficits. While the subsidies have helped shield consumers from price spikes, economists have panned the programme as wasteful.

Anwar said the savings from the Budi95 subsidy rationalisation will be channelled back to the people through direct cash aid programmes. “Nevertheless, the government’s focus remains on improving healthcare, education, and basic infrastructure services,” he said.

The MOF will provide further details in the coming weeks and has urged the public to rely on official channels for accurate updates.