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Petrol Pain Ahead? RON95 Subsidy Might Be Reduced As Prices Soar

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The conflict in the Middle East may soon have a more direct impact on Malaysian motorists as rumours swirl that the government plans to cut the monthly subsidised RON95 quota from 300 litres to just 200 litres.

This is according to sources as reported by The Edge.

The move, under the BUDI95 programme, will apparently start in April, forcing drivers to pay market rates once they hit the new cap. However, this has not been confirmed officially.

Big Price Hikes Already Here

Subsidised RON95 currently costs RM1.99 per litre, but once the quota is reached, prices jump sharply. From Thursday (26 March), unsubsidised RON95 will rise 60 sen to RM3.87 per litre, marking a 45% increase since 11 March.

Other fuels are not spared:

  • RON97: RM5.15 per litre (+58%)
  • Diesel: RM5.52 per litre (+77%)

These record-breaking increases come amid global oil volatility triggered by the ongoing Iran conflict. Brent crude recently hit US$94.49 per barrel, a 33% jump from late February levels, putting further pressure on the subsidy budget.

READ MORE: Malaysia Ready To Help Broker Middle East Peace — While Unsubsidised Diesel Surges To RM5.52 Back Home

Why the Quota Cut Matters

The Ministry of Finance faces a projected RM24 billion subsidy bill this year if crude prices stay high. Prime Minister Datuk Seri Anwar Ibrahim has warned that the current subsidy programme is straining government coffers, making cuts unavoidable.

For everyday drivers, this means budgeting fuel more carefully and planning trips wisely. Long-haul journeys and daily commutes will now feel the pinch faster than before.

What Drivers Can Do

While Malaysians still have the subsidy in place, it’s still advisable to be mindful of our petrol usage and not abuse the benefit. To make sure you don’t end up paying a bomb for a few litres of fuel, you can:

  • TTrack your fuel usage to stay within the quota limit
  • Carpool or combine trips to save fuel
  • Consider public transport for longer routes

The rumoured BUDI95 quota cut marks a significant shift in how Malaysians pay for fuel, and the reality of higher prices is now unavoidable.

READ MORE: Malaysians Weigh WFH Options Amid Rising Oil Prices

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Petrol Pain Ahead? RON95 Subsidy Might Be Reduced As Prices Soar
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