KUALA LUMPUR: There have been no discussions at the National Economic Action Council to finalise any reduction in the monthly Budi Madani RON95 (Budi95) fuel quota, says Akmal Nasrullah Mohd Nasir.
The Economy Minister said the government will fine-tune the system from time to time based on current needs.
“In terms of approach, we need to ensure there is a balance in order to sustain national economic resilience,” he said.
Akmal Nasrullah added that the government’s next step is to improve the management of diesel subsidies.
“The main challenge in subsidy management is the significant gap between market and subsidised prices, which ultimately attracts smuggling activities and leakages,” he said after launching the “Malaysia Economic Monitor: Raising the Ceiling, Raising the Floor – The Jobs Agenda as a Productivity Agenda” report yesterday, Bernama reported.
The Budi95 fuel quota was previously set at 300 litres per month but was reduced to 200 litres from April 1, a move aimed at managing fuel subsidy spending amid the Middle East conflict.
Meanwhile, Transport Minister Anthony Loke also said there are currently no plans to cut subsidies for the wealthy.
He noted that the government requires a straightforward system in managing fuel subsidies, with Budi95 remaining unchanged for all household income groups.
“The principle behind the Budi95 policy is to keep the system simple and direct.
“The Cabinet has deliberated on this extensively, and most members agree that it must be simple,” he said.
On users who fall through gaps in the system, such as tow truck operators, Loke acknowledged that the current mechanism cannot cover everyone.
“There is no system that can cover all cases. It is impossible for everything to be fully covered under subsidies.
“But most essential goods and industries are covered under the current system. Most commercial vehicles, especially those transporting essential or containerised goods, are receiving diesel at subsidised rates.
“I think the system has worked well over the past two months. Most importantly, we have ensured diesel supply remains stable. In Malaysia, we do not have a supply problem,” Loke added.
In George Town, Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong said that various concerns and proposals have been raised regarding the Budi95 subsidy scheme, but there has been no Cabinet decision to reduce the subsidy.
“As the minister responsible for the micro, small and medium enterprises sector, I have stated that the Budi95 subsidy should be maintained for now.
“We also want to improve the implementation of the diesel subsidy so that we can help entrepreneurs who use diesel vehicles,” he said after attending the National Hawkers and Small Traders Advisory Council Meeting 2026.
