Putrajaya weighing further cut to Budi95 fuel quota to 150 litres, says Liew Chin Tong

KUALA LUMPUR, May 12 — Malaysia is considering further tightening the subsidised RON95 fuel allocation under the Budi95 programme, with the monthly cap potentially reduced to 150 litres, the New Straits Times (NST) reported.

Deputy Finance Minister Liew Chin Tong said the proposed adjustment is based on consumption data showing that most Malaysians use significantly less than the current subsidised threshold.

According to the report, the quota was previously reduced from 300 litres to 200 litres in March as part of the initial rationalisation phase.

“The data consistently show that 80 per cent of Malaysians use less than 200 litres. The next step is 150 litres, as 60 per cent of the population uses less than 150 litres,” he was quoted as saying at the Affin Market Outlook 2026: Propelling Malaysia Forward event today.

Liew reportedly said that the mechanism should be viewed not only from a fiscal perspective but also as part of broader efforts to ensure long-term fuel supply resilience amid geopolitical uncertainties and global energy shocks.

“The number one concern for the nation is how to ensure that we have a supply and consistent supply for as long as possible, even if the war drags on,” he was quoted as saying. 

The government previously spent about RM700 million monthly on fuel subsidies before recent global tensions, but the figure has since surged to RM7 billion a month.

Despite the rising subsidy bill, Liew stressed that ensuring affordable fuel access for lower-income groups, particularly motorcycle riders and the precarious workforce, remains a priority.

“Politically, I want to ensure that motorcycle users continue to enjoy a highly subsidised rate because if the precarious class is affected by high prices, you may have to pay a high political and societal price,” he reportedly said.

Liew also said Malaysia must rethink its reliance on private vehicles and redesign urban planning policies to encourage greater public transport use and inner-city living.