Govt Allocates RM11 Billion for BUDI95, Projects Up to RM4 Billion Annual Savings

PUTRAJAYA: The MADANI government will allocate about RM11 billion to cover the difference between the subsidised price of RM1.99 per litre and the unsubsidised pump price of RM2.60 under the BUDI MADANI RON95 (BUDI95) initiative. The Ministry of Finance (MOF) said today that with the shift away from blanket subsidies, BUDI95 is expected to generate annual savings of between RM2.5 billion and RM4 billion.

BUDI95

These savings, it added, will be channelled towards expanding targeted aid such as the Rahmah Cash Contribution (STR) and the Rahmah Basic Contribution (SARA). The BUDI95 subsidy system, designed for Malaysian citizens, allows those aged 16 and above with a valid driving licence to purchase up to 300 litres of RON95 monthly. According to the MOF, this quota is sufficient for most drivers, as data from the Department of Statistics Malaysia showed that 99% of motorists consume below this threshold.

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