Malaysia slashes subsidised RON95 quota by a third to 200 litres as temporary measure
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From April 1, Malaysian citizens are entitled to a monthly maximum of 200 litres of subsidised RON95 down from a previous quota of 300 litres.
PHOTO: ST FILE
- Malaysia cuts subsidised RON95 petrol quota to 200 litres monthly from April 1 due to Middle East conflict and rising global oil prices.
- The Budi95 fuel subsidy remains at RM1.99, while unsubsidised RON95 costs RM3.97; quota reduction unlikely affects most Malaysians.
- Diesel pump limits are set in Sabah/Sarawak to prevent smuggling, and Malaysia is working to release its oil ships seized in Iran.
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SINGAPORE – Malaysia will temporarily slash the quota for subsidised fuel by a third from April 1, allowing citizens to buy a monthly maximum of 200 litres of RON95 petrol, Prime Minister Anwar Ibrahim announced on March 26. This comes amid the deepening energy crisis sparked by the Middle East conflict.
The reduction is from the previous quota of 300 litres; however, the subsidised rate of RM1.99 (64 Singapore cents) per litre remains unchanged under the Budi95 fuel subsidy scheme introduced in September 2025.
Without the subsidy, RON95 costs RM3.97 per litre.
“This measure is temporary, pending recovery in global oil supply and economic conditions, although there are no clear signs of improvement yet,” Datuk Seri Anwar said on March 26, in a special address that was shown live on TV.
“All countries, especially neighbouring countries, have increased oil prices, but Malaysia decided to maintain the Budi95 oil price at RM1.99,” he said.
However, he added that the government “is forced” to reduce the quota as the country is facing mounting cost pressures owing to the conflict in the Middle East.
“Can we allow for the current situation to continue without any action and think that we are free from any trouble?” he asked rhetorically. “Food supplies are affected, prices will surely increase... so will oil and gas.”
He noted, however, that the quota reduction is unlikely to affect the majority of Malaysians. Most of them use an average of 100 litres of fuel a month, and almost 90 per cent use less than 200 litres a month, he said, citing government data.
The RON95 fuel cap for e-hailing and gig workers will remain at 800 litres. However, the government will implement pump limits of 50 to 150 litres of diesel per purchase in Sabah and Sarawak to prevent diesel smuggling on the Borneo island, Mr Anwar said.
He also urged residents to take responsibility in reporting incidents of foreigners abusing oil subsidies in the country.
On March 22, Mr Anwar revealed that Malaysia’s fuel subsidy bill had surged more than four times – from RM700 million to RM3.2 billion – in under a week due to the spike in global oil prices.
Brent crude, the global oil benchmark, has been hovering above US$100 for the most part in the last two weeks after US-Israel attacks on Iran that started on Feb 28 led to the closure of the Strait of Hormuz, where 20 per cent of the world’s oil supply passes through.
During the announcement, he also provided an update on talks with leaders in Iran, Egypt, Turkey and Pakistan.
Mr Anwar said Iran had given early passage through the Strait of Hormuz and that Malaysia and Iran are “in the process of releasing Malaysian oil ships and its workers” so that they can sail home.
