PETALING JAYA: The implementation of Budi Madani RON95 (Budi95) is the result of a carefully considered approach to subsidy targeting that balances the people's welfare with fiscal responsibility, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said this measured approach is considered the most accessible, with seamless implementation across more than 4,000 petrol stations nationwide using MyKad verification.
"The reform is straightforward: all Malaysians continue to enjoy subsidised fuel at RM1.99 per litre, even lower than today's RM2.05.
"What changes is that non-citizens and corporate users pay market rate, ensuring subsidies reach those they were intended for," he said in a social media post on Wednesday (Sept 24).
He added that the initiative arrived at the 300-litre monthly quota after crunching data from the Statistics Department and finding that it was sufficient for 99% of Malaysian consumers.
"The outcome from this is expected to be between RM2.5bil to 4bil in annual savings that can be redirected to programmes that benefit the rakyat," he said.
He also said the government took its time in rolling out this reform to ensure fairness.
"Rather than rushing into blanket price increases or complicated targeted cashback assistance, we chose a path that protects Malaysian families while still addressing fiscal sustainability.
"The success of our diesel subsidy targeting, which exceeded savings projections from RM4bil to over RM7bil annually, demonstrates not only that we can do this with some clear-headed thinking, but that we must do this, to sustain our economic future," he added.
The government recently announced that eligible Malaysians would be able to purchase RON95 petrol at the subsidised price of RM1.99 per litre, down from RM2.05 per litre, under Budi95.
Each eligible motorist would be entitled to 300 litres of subsidised RON95 per month.
The programme would be rolled out in stages, beginning on Saturday (Sept 27) for members of the police force and the Armed Forces; Sunday (Sept 28) for Sumbangan Tunai Rahmah (STR) recipients; and Tuesday (Sept 30) for every Malaysian with a MyKad and valid driving licence.
"This is responsible governance in action. Every ringgit saved from better-targeted subsidies can support education, healthcare, infrastructure, and be directed towards assistance like STR and Sara," Amir Hamzah wrote.
He also said the Budi95 initiative represents another step toward sustainable growth built on sound fiscal foundations.
"When subsidies reach their intended recipients and government resources are optimised, we create space for the strategic investments Malaysia needs to achieve high-income status," he added.
