The Malaysian government has launched Budi Madani (Budi95), a targeted subsidy program that fixes the RON95 petrol price at RM1.99 per litre for all eligible citizens beginning 30 September 2025. This long-awaited move is aimed at making subsidies fairer, cutting leakages, and easing the cost of living for the rakyat.
Announced by Prime Minister Datuk Seri Anwar Ibrahim during his monthly staff meeting on 22 September, the policy has been described as both a recognition of Malaysians’ sacrifices and a practical step to protect national resources.
RON95 Subsidy Malaysia 2025: How to Redeem Budi Madani Petrol Prices at RM1.99 for Malaysians
Key Dates for Budi Madani Rollout. The transition to targeted RON95 subsidies will take place in phases:
- 27 September 2025: Armed Forces & Police (300,000 personnel)
- 28 September 2025: STR (Sumbangan Tunai Rahmah) recipients, largely from the B40 group
- 30 September 2025: Open to all Malaysian citizens aged 16 and above with a valid driving licence
From this date onward, non-citizens and large corporations will no longer have access to subsidised fuel. They will pay the unsubsidised market price, estimated at RM2.60 per litre, while Malaysians enjoy the RM1.99 price cap.
Who Is Eligible for the RON95 Subsidy?
Eligibility under Budi95 is broad to ensure no Malaysian is left behind:
- All Malaysian citizens aged 16 and above
- Must hold an active driving licence
- No income limit – everyone qualifies regardless of earnings
- Capped at 300 litres per person per month
To support gig workers, e-hailing drivers can apply for a higher ceiling so their livelihoods are not affected. This monthly limit was set after studies by the Department of Statistics Malaysia (DOSM) showed that more than 99% of private vehicle owners do not exceed this threshold.
According to government estimates, over 16 million Malaysians stand to benefit from this initiative.
Why The Subsidy Matters
Malaysia has long debated how to reform fuel subsidies. Critics argued that blanket subsidies often benefited the wealthy and non-citizens, draining national funds while missing their core purpose.
With BUDI95, the government hopes to:
- Ease the cost of living by keeping essential fuel affordable
- Curb smuggling and leakage of subsidised petrol
- Channel savings into other sectors like healthcare, education, and infrastructure
- Ensure fairness by removing subsidies for non-citizens and commercial entities
As Anwar Ibrahim explained, “This initiative is both a recognition of Malaysians’ unity during National Day and Malaysia Day, and a long-term measure to honour our people by making subsidies truly for them.”
Petrol Price Under Budi95
- Malaysians: RON 95 at RM1.99 per litre (subsidised)
- Non-citizens & large companies: RON 95 at RM2.60 per litre (unsubsidised)
Previously, RON95 was priced at RM2.05, meaning Malaysians will now see further relief at the pumps.
How to Redeem the Subsidy at Petrol Stations
The government has kept the process simple and automatic. There is no registration required, just verification with MyKad.
Steps to Enjoy Subsidised Fuel:
- Insert or tap MyKad at the petrol station pump or shop terminal.
- Pay using cash, debit/credit card, or e-wallets such as Touch ‘n Go, Setel (Petronas), or CaltexGo.
- 3.Pump petrol as usual – the subsidised rate is automatically applied.
Example at Shell (as shown by Pakcik Shell demonstrations):
- Tap debit/credit card for payment
- Insert MyKad for verification
- (Optional) Tap BonusLink card for reward points
- Begin fuelling at RM1.99 per litre
For those using Setel, a one-time account verification (including a selfie check) ensures smooth digital transactions.
FAQ: Common Questions on Budi95
Do I need both MyKad and driving licence?
- No. Only MyKad is required at the petrol station. However, your driving licence must be valid.
Do I need to register for Budi95?
- No registration is needed. All eligible Malaysians are automatically covered.
When do I use MyKad?
- At the start of each fuel purchase, for eligibility verification.
What payment options are available?
- Cash, debit card, credit card, and supported e-wallet apps.
How do I check my eligibility?
- At petrol station terminals (pumps or counters)
- Via digital apps such as Touch ‘n Go eWallet, Setel, and CaltexGo
What if my MyKad chip is faulty?
- If you have successfully redeemed SARA or STR aid before, your chip is functional. Only faulty chips need replacement.
Broader Benefits for the Nation
Beyond individual savings at the pump, Budi95 is designed to:
- Prevent fuel smuggling to neighbouring countries where petrol is more expensive
- Protect national resources by reducing subsidy wastage
- Reinvest savings into welfare programmes like STR and SARA
- Support economic stability by keeping transport costs predictable for citizens
Extra Support: Breakdown Assistance for Drivers
Car trouble while travelling? Bateriku now complement the subsidy rollout by offering:
- 24/7 nationwide coverage
- Over 2,000 workshops and towing partners
- More than just battery replacement – they position themselves as your all-in-one Breakdown Buddies
This ensures Malaysians not only benefit from cheaper fuel but also reliable road support.
The Budi Madani RON95 subsidy marks a major policy shift in how Malaysia manages fuel subsidies. By ensuring only citizens benefit and by introducing simple MyKad verification, the government is making fuel support fairer, more transparent, and more effective.
Starting 30 September 2025, Malaysians can fill up at RM1.99 per litre, while non-citizens and companies pay full price. The savings generated will be reinvested into public services – a win-win for the rakyat and the nation. So, the next time you fuel up, remember: just bring your MyKad, enjoy the savings, and know that the subsidy is truly for Malaysians.
