New RON95 scheme allows flexible refuelling but uses MyKad and data checks to curb misuse.
Malaysia’s upcoming BUDI95 fuel subsidy will let eligible drivers pump petrol multiple times a day without limits — but the government has warned it will monitor closely for abuse and profiteering.
No Daily Limits for Now
Finance Minister II Datuk Seri Amir Hamzah Azizan confirmed that under BUDI95, launching on 30 September 2025, Malaysians may refuel as many times a day as they wish. However, transactions will be monitored to detect unusual patterns, such as repeated top-ups within short intervals, which could signal resale of subsidised fuel.
Safeguards Against Abuse
The scheme incorporates MyKad verification at petrol pumps and backend data analytics to flag suspicious activity. Subsidised transactions linked to a single MyKad may be temporarily blocked if abnormal behaviour is detected, ensuring that subsidies reach genuine users.
Eligibility and Quotas
Malaysians aged 16 and above with valid driving licences can purchase up to 300 litres of RON95 petrol or diesel monthly at the subsidised rate of RM1.99 per litre. Registered e-hailing drivers may apply for higher quotas, subject to company verification.
Digital and On-Site Verification
Verification will be supported by both physical MyKad checks and digital platforms such as Touch ’n Go eWallet and Setel. Treasury Secretary-General Datuk Johan Mahmood Merican said the Finance Ministry is working with the Malaysian Communications and Multimedia Commission (MCMC) and oil companies to ensure station systems are ready nationwide, including rural areas with weaker connectivity.
Tackling RM20 Billion Leakages
The government estimates that Malaysia’s current RON95 subsidy suffers annual leakages of nearly RM20 billion, with over 20 per cent diverted to foreigners, businesses, or smuggling operations. Officials stress that plugging these leakages is critical to maintaining a fair and sustainable subsidy system.
Redirecting Savings to Welfare
According to Amir Hamzah, savings from reduced leakages will be redirected into welfare programmes such as Sara, benefiting Malaysians more directly. He underlined that “every ringgit saved is important” to ensure subsidies are not exploited at the expense of ordinary citizens.
The BUDI95 subsidy reflects Malaysia’s effort to balance affordability with accountability. While daily refuelling remains unlimited for now, strong verification and monitoring systems aim to protect the scheme from misuse. If successful, BUDI95 could ensure fuel subsidies benefit genuine households while easing the nation’s fiscal burden.
Sources: TechNave (2025) , Malay Mail (2025)
Keywords: Malaysia, BUDI95, RON95, Fuel Subsidy, Petrol Quota, MyKad Verification
