If you drive regularly and rely on the Budi95 subsidy to keep your fuel costs down, there's an important change kicking in from 1 April 2026 that you should know about. Prime Minister Anwar Ibrahim has announced a temporary cut to the monthly subsidised RON95 quota — dropping from 300 litres to 200 litres per month — as the government manages the impact of surging global oil prices driven by the ongoing conflict in West Asia.
Here's a full breakdown of what's changed, who's affected, what you'll pay if you go over the limit, and what the current petrol and diesel prices look like across Malaysia.
Effective 1 April 2026, the monthly subsidised RON95 quota under the Budi95 programme has been cut from 300 litres to 200 litres per month. The subsidised price stays fixed at RM1.99 per litre. Once you exceed 200 litres, you'll pay the unsubsidised market rate — currently RM3.87 per litre. The government says this is a temporary measure due to global oil price pressures.
The Budi Madani RON95 (Budi95) programme launched in late September 2025, giving all eligible Malaysians with a valid driving licence 300 litres of RON95 at a flat RM1.99/litre each month. Now, with Brent crude oil surpassing US$100 per barrel amid the prolonged West Asia conflict, Malaysia's subsidy bill has swelled to an estimated RM4 billion a month — and the government is taking action to keep that manageable.
PM Anwar confirmed the cut in a special televised address on 26 March 2026, stressing that the move is temporary and will be reviewed as global supply conditions change.
Probably not. The government says that around 90% of Budi95 users consume less than 200 litres of RON95 per month, and that the average monthly usage is roughly 83–100 litres. If you spend less than RM398 on subsidised RON95 each month, you won't notice any difference. Heavy drivers, long-distance commuters, and those using personal vehicles for commercial purposes are most likely to feel the pinch.
To put it in perspective: 200 litres at RM1.99/L works out to RM398 of subsidised fuel per month. If your monthly fuel spend is below that, you're in the clear — the cut doesn't touch you.
If you do go over 200 litres, those additional litres will be charged at the current unsubsidised RON95 rate of RM3.87/L — a difference of RM1.88 per litre. So someone who previously used all 300 litres at RM1.99 (RM597 total) would now pay RM398 + (100L × RM3.87) = RM785 — an increase of RM188 a month in the worst-case scenario.
For the week of 2 to 8 April 2026, unsubsidised RON95 is priced at RM3.87 per litre (unchanged), RON97 has dropped to RM4.95 per litre (−20 sen), and diesel in Peninsular Malaysia has risen to RM6.02 per litre (+50 sen). Subsidised RON95 under Budi95 remains fixed at RM1.99 per litre. Diesel in Sabah, Sarawak and Labuan stays unchanged at RM2.15 per litre.
The Finance Ministry attributed the sustained pressure on diesel prices to the ongoing West Asia conflict. Malaysia's domestic fuel prices are set weekly under the Automatic Pricing Mechanism (APM), with RON97 easing slightly as global crude softened marginally, while diesel continued to climb.
eHailing and gig drivers who are registered under the Budi95 programme retain their elevated monthly quota of 800 litres of subsidised RON95 at RM1.99/litre. This has not been adjusted as part of the April 2026 changes. The government maintained this to protect gig workers whose livelihoods depend directly on fuel costs.
This was a key part of the PM's announcement — policymakers recognised that cutting the quota for drivers who depend on fuel for income would have an outsized impact. If you're a Grab, inDrive, or food delivery rider registered under the higher Budi95 tier, your 800L monthly allowance stays intact.
The Budi95 quota reduction is a direct response to soaring global crude oil prices caused by the ongoing West Asia conflict. With Brent crude topping US$100 per barrel, Malaysia's monthly fuel subsidy bill has risen to an estimated RM4 billion — up from around RM3 billion just two weeks prior. The government has described this as a temporary, targeted adjustment to keep the subsidy programme financially sustainable.
Malaysia is an oil-producing nation, but a significant portion of the country's refined fuel supply is still sourced internationally — meaning global price shocks flow through to domestic subsidy costs even if local production is unaffected. The Finance Ministry noted that global crude prices have surged more than 40% as a result of the conflict.
PM Anwar said the government intends to keep the Budi95 programme running beyond May 2026, and is actively exploring alternative petroleum sources including Brazil and Canada to help stabilise supply and manage costs.
Diesel prices in Sabah, Sarawak and Labuan remain fixed at the subsidised rate of RM2.15 per litre — there's no price increase for East Malaysia. However, new per-transaction purchase limits on diesel are being enforced from 1 April 2026 to curb smuggling and leakage, especially in border areas.
The diesel purchase caps per transaction (effective 1 April) are:
If you're a heavy driver who regularly exceeds 200 litres a month, the most effective strategies are to plan fills carefully to maximise your subsidised 200L first, reduce unnecessary trips, and consider carpooling or e-hailing for days when your vehicle use is lighter. If your petrol spend is already below RM398/month, no action is needed.
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Fuel subsidies tightening is a good reminder to audit all your fixed monthly expenses — and your phone plan is one of the easiest places to find savings, especially if you're running multiple lines for your household.
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Effective 1 April 2026, the monthly Budi95 quota for subsidised RON95 petrol has been reduced from 300 litres to 200 litres per month. The subsidised price remains fixed at RM1.99 per litre. This is described by the government as a temporary measure in response to rising global oil prices. eHailing and gig drivers registered under the elevated Budi95 tier retain their 800-litre monthly quota — this has not been reduced.
Once you've used your 200-litre Budi95 allocation for the month, any additional RON95 you pump will be charged at the unsubsidised market rate. For the week of 2 to 8 April 2026, the unsubsidised RON95 rate remains at RM3.87 per litre — compared to the subsidised RM1.99 per litre. The difference is RM1.88 per litre. Note that unsubsidised fuel prices change weekly under the Automatic Pricing Mechanism, so the over-quota rate you pay will vary.
The government says no — approximately 90% of eligible Budi95 users consume less than 200 litres of RON95 per month. According to Treasury data, the average monthly usage under Budi95 is around 83 to 100 litres. Those most likely to be affected are heavy daily commuters, people who drive long distances regularly, and those using private vehicles for commercial purposes such as food delivery or passenger transport without being registered under the eHailing quota tier.
For the week of 2 to 8 April 2026: subsidised RON95 (Budi95) — RM1.99/L (unchanged); unsubsidised RON95 — RM3.87/L (unchanged); RON97 — RM4.95/L (−20 sen); Diesel B10/B20 in Peninsular Malaysia — RM6.02/L (+50 sen); Diesel B7 in Peninsular Malaysia — RM6.22/L (+50 sen). In Sabah, Sarawak and Labuan, diesel prices remain unchanged at RM2.15/L (B10/B20) and RM2.35/L (B7). New prices for the following week are announced each Wednesday by the Ministry of Finance.
No — the government has explicitly described the 200-litre quota as a temporary measure. PM Anwar said the limit will be reviewed and adjusted based on how global oil supply conditions evolve. The government has also stated its intention to keep the Budi95 programme running beyond May 2026, and is exploring alternative fuel supply sources including Brazil and Canada to help manage costs over the longer term.
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