Starting midnight on October 1st, 2025, over 16 million eligible Malaysians began enjoying the benefits of the BUDI MADANI RON95 initiative (BUDI95) — a targeted fuel subsidy designed to ease the burden of daily expenses for the rakyat.
This game-changing move, led by the Ministry of Finance, reduces the RON95 petrol price to RM1.99 per litre, down from RM2.05 previously, with each qualified individual eligible for up to 300 litres per month. It’s a powerful example of how targeted subsidies can directly support the rakyat while improving national fiscal sustainability.
What Is BUDI95?
BUDI95 is part of the broader BUDI MADANI initiative, which aims to ensure fuel subsidies benefit the right people — especially the B40 income group, civil servants, and eventually the wider population.
Implemented in phases, the programme first included 300,000 members of the Armed Forces and Royal Malaysia Police (PDRM) starting from 27 September 2025, and then expanded to over 5 million Sumbangan Tunai Rahmah (STR) recipients in the B40 category.
Thanks to this initiative, eligible individuals now enjoy savings on their fuel spending with no application process needed. All they have to do is verify their eligibility using their MyKad or valid driver’s license at participating petrol stations.
How Does BUDI95 Work?
Here’s a quick breakdown:
- RON95 price: RM1.99 per litre (compared to RM2.05 previously)
- Quota: Up to 300 litres per person, per month
- Verification: Via MyKad or driver’s license
- Payment: Through your preferred e-wallet app
- Eligibility: Starts with STR recipients and key government groups, with potential future expansion
This initiative recorded rapid uptake, with over 20% of military and police personnel conducting BUDI95 transactions on Day 1, totalling RM3.7 million in RON95 purchases.
Why This Matters for Malaysians
Rising living costs — especially fuel, food, insurance, and healthcare — are a significant concern for many Malaysians. BUDI95 not only provides immediate relief at the pump but also shows a smarter way to distribute subsidies fairly.
Instead of blanket subsidies that benefit everyone (including those who don’t need it), BUDI95 ensures targeted aid reaches the rakyat who need it most — helping balance the government’s fiscal responsibilities while still easing the cost-of-living pressure on everyday Malaysians.
Savings generated from this targeted subsidy will be reinvested into critical sectors like education, healthcare, and social development, making it a long-term win for the nation.
Final Thoughts
At Fincrew, we believe that financial security goes beyond just insurance and savings — it’s also about smarter public policies that protect your wallet. The BUDI95 initiative is a clear example of that — putting money back into the pockets of everyday Malaysians, while paving the way for a more efficient, sustainable subsidy system.
Whether you’re driving to work, heading out for groceries, or managing your family budget, lower fuel prices mean more breathing room for what really matters.
