Malaysia Cut Its Fuel Quota In April, Anwar Gave It Back On Merdeka Eve

Malaysia Cut Its Fuel Quota In April, Anwar Gave It Back On Merdeka Eve

The Rakyat Post - News·2026-09-01 06:01

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The BUDI95 monthly fuel quota is going back up to 300 litres — the same level it was before the government cut it in April.

Prime Minister Datuk Seri Anwar Ibrahim made the announcement during his National Day Eve address at the Putrajaya International Convention Centre(PICC) today (30 Aug), with the restored limit taking effect on Tuesday (1 Sept)

The cut in April was framed as a temporary measure.

Global oil prices had spiked amid ongoing conflict in West Asia, and the government cited fiscal pressure as the reason for trimming the individual monthly allocation from 300 litres to 200 litres.

Four months later, the same government reversed the decision — not through Budget 2027 in October, but through a National Day speech.

BUDI Diesel users receive an even larger adjustment.

The monthly allocation for eligible private diesel vehicle owners, including 4WD and pick-up truck registrants, rises from 300 litres to 400 litres.

Both the RON95 price of RM1.99 per litre and the diesel rate of RM2.10 per litre remain unchanged.

@malaysiatribune PUTRAJAYA : Datuk Seri Anwar Ibrahim hari ini mengumumkan kerajaan setuju mengembalikan kelayakan asas BUDI RON95 dari 200 liter kepada 300 liter sebulan. #malaysiatribune #budi #videoreelsシ #anwaribrahim #trendingnewsmalaysia ♬ original sound – malaysia tribune

From Blanket Subsidy to MyKad Tap: How BUDI MADANI Was Built

Before the BUDI MADANI framework was created, every vehicle at every Malaysian petrol pump — including foreign cars, wealthy owners, and commercial smugglers — paid the same heavily discounted price for fuel.

Diesel consumption in East Malaysia alone approached two billion litres annually, against estimated actual local demand of roughly one billion.

The government was, in effect, funding the difference, and the fix came in phases: the Ministry of Finance launched a diesel trial in May 2024, initially distributing RM200 monthly cash assistance to eligible private diesel owners through bank transfers.

The portal was built entirely by civil servants at no external development cost and later integrated with the PADU central database.

When BUDI95 launched on 30 September, 2025, the cash transfer model was replaced with MyKad verification at the pump — eligible citizens tap their identification card or use linked applications such as Petronas Setel to unlock the subsidised rate automatically.

Within its first months, the targeted RON95 system recorded savings of approximately RM800 million.

By 1 July, the old diesel cash handout was retired entirely, and both petrol and diesel subsidies moved to a unified pump-based system.

For registered users, no action is required; quotas will refresh automatically.

Those whose MyKad number does not match their Road Transport Department (JPJ) driver’s licence records are advised to update their details to avoid verification errors at the pump.

Unregistered eligible vehicle owners can apply through the official BUDI MADANI Portal.

Six Measures Announced on National Day Eve

Anwar also unveiled several other immediate measures targeting cost-of-living relief, small business support, and public service upgrades.

On the business front, he raised the mandatory e-Invoicing exemption threshold for MSMEs from RM1 million to RM3 million, while introducing the Geran Sejahtera Madani — a new RM200 million grant pool designed to support small vendors, night market traders, and home-working mothers.

Additional micro-credit funding will also be channelled through TEKUN and BSN to offer easier loans for micro-traders who fall outside conventional banking reach.

The 2025 school maintenance allocation receives a 50% boost, jumping from RM1 billion to RM1.5 billion to cover repairs across all school types nationwide.

Anwar further announced that billions of ringgit recovered from illegal financial activities and corruption will be directly funnelled into public healthcare and education, framing it as returning ill-gotten gains to the communities most affected.

To round out the package, the government will give young Malaysians better access to AI tools and training, while also spending more to digitise public hospitals and clinics — aiming to reduce wait times and improve how patient records are managed across the country.

@anwaribrahimofficial Merdeka bererti bebas menentukan haluan sendiri dan yakin akan kekuatan kita sebagai bangsa yang bermaruah dan sebuah negara yang berdaulat. Segala yang kita kecapi hari ini hadir dengan keringat, darah dan air mata generasi terdahulu. Justeru, peliharalah negara ini sebaik-baiknya. Pertahankan perpaduan rakyat pelbagai kaum sebagai tunjang kekuatan, dan isilah kemerdekaan dengan keberanian, keyakinan serta jiwa yang benar-benar merdeka. #MalaysiaMADANI #KesejahteraanDinikmati #YakinMADANI ♬ original sound – Anwar Ibrahim

READ MORE: [Watch] Thousands Came For The Merdeka Parade, They Stayed For The Cat

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