Photo courtesy of Malay Mail Malaysia has restored the monthly subsidised RON95 petrol ceiling under the BUDI95 programme to 300 litres, giving eligible motorists greater access to fuel at RM1.99 per litre from 1 September. Higher ceiling restored after five months The government reduced the basic monthly eligibility ceiling from 300 litres to 200 litres five months ago. The Finance Ministry said the return to the higher limit reflects more orderly fuel-supply management, stronger enforcement, Malaysia’s economic performance and the government’s financial capacity. About 16 million users can buy RON95 at the subsidised rate. The ministry also cited Malaysians who travel long distances for daily activities and small traders whose livelihoods depend on vehicles as groups likely to benefit from the change. The 300-litre figure is a ceiling, not a free monthly allocation. A motorist using 100 litres will still buy only that amount, while someone consuming 250 litres can now purchase all 250 litres within the subsidised limit, provided they meet the programme’s eligibility requirements. Most drivers may notice little difference Government figures put average monthly RON95 use at around 100 litres, while 90 per cent of Malaysians consume no more than 200 litres. For most motorists, therefore, restoring the extra 100 litres is unlikely to change their normal spending. The difference matters most to heavier users. Under the former 200-litre ceiling, a driver consuming 250 litres had 50 litres outside the subsidised allowance. Using the government’s subsidy figure of RM1.83 per litre for 27 August to 2 September, those 50 litres represented RM91.50. That calculation is an illustration based on published prices, not an official estimate of individual savings. The actual benefit will change with the unsubsidised RON95 price and each driver’s consumption. Subsidy cost depends on actual use The higher limit does not automatically mean every eligible user will buy another 100 litres. The fiscal effect depends on the amount of additional subsidised fuel purchased and the prevailing subsidy per litre. For 27 August to 2 September, unsubsidised RON95 was set at RM3.82 per litre, compared with the BUDI95 price of RM1.99. The ministry said the monthly ceiling was increased automatically for September. What it means for foreigners in Malaysia Foreign motorists should not assume that the restored 300-litre ceiling applies to them, as access remains subject to BUDI95 eligibility rules. Those who are not eligible should budget using the applicable unsubsidised pump price and check official guidance before relying on the subsidised rate. 3 September 2026
