Malaysians will continue to pay RM1.99 per litre for RON 95 petrol under Budi95 even if the government’s fuel subsidy bill climbs to between RM42 billion and RM45 billion a year, prime minister Datuk Seri Anwar Ibrahim said today, as reported by Bernama.
Speaking at the Sentuhan Kasih Madani programme and the launch of the National Cost of Living Action Plan 2030 at the Hang Jebat Sports Complex in Krubong, Melaka, Anwar said global crude oil prices have risen to around US$120 to US$130 per barrel from about US$70 previously, and that the government is prepared to absorb the resulting increase in subsidy costs rather than pass it on at the pump.
“It is better for the government to bear the burden than to burden the people, our parents,” he said. Charging market prices for petrol would cost ordinary Malaysians an extra RM2 to RM3 a day, at least RM5 for some, and around RM10 a day for those who have to drive to work and send their children to school, the prime minister said.
Anwar said the aim is to shield low- and middle-income groups from higher fuel costs. He also rejected the view that generous subsidies make people overly dependent on government aid, saying that policy has to reflect the realities faced by low-income households.
The RM42 billion to RM45 billion range is higher than the figure Anwar gave just five days ago. On October 19, at the finance ministry’s monthly assembly in Putrajaya, he said fuel subsidies were estimated at RM40 billion a year to keep RON 95 at RM1.99 per litre. In July, he told parliament that spending on petrol and diesel subsidies would approach RM40 billion in 2026, more than double the RM15 billion allocated under Budget 2026.
That RM40 billion estimate for this year was repeated by the finance ministry in a written parliamentary reply earlier this month, and Budget 2027, tabled on October 9, set aside another RM40 billion for fuel subsidies next year. BIMB Research has put the potential cost for 2026 at as much as RM52 billion, according to The Edge.
The figures so far show how the bill has moved through the year. Anwar told parliament in July that petrol and diesel subsidies ran at nearly RM800 million a month in January and February, and the finance ministry said in its reply this month that the Middle East conflict then pushed crude above US$120 per barrel and the monthly cost of petrol, diesel and LPG subsidies to almost RM5 billion in March and April. Finance minister II Datuk Seri Amir Hamzah Azizan has said the bill peaked at RM7.5 billion in April. It then eased to around RM3 billion a month between June and August as oil prices moderated, the ministry said.
For Budi95 itself, the finance ministry told parliament in June that 11.1 billion litres of fuel with a sales value of RM22.1 billion had been sold under the Budi Madani programme from its start at the end of September last year up to May 31 this year, of which RM11.2 billion was the cost of subsidies borne by the government.
The gap the government is covering remains wide. Unsubsidised RON 95 is priced at RM4.32 per litre this week, which means the government pays RM2.33 for every litre bought at RM1.99 under Budi95. The monthly Budi95 quota was restored to 300 litres on September 1, after being cut to 200 litres in April when oil prices spiked.
At the Melaka event, Anwar also said economic success should be measured by living standards and well-being, and not only by growth, investment and trade figures.
do something about the number of cars on the road before its too late
So they changed the subsidy and banned foreigners from subsidised price to ensure its sustainability, and now they say even if unsustainable, better the government take the burden, and not the people. Have they forgotten that the government is a REPRESENTATION of the people? That a government has no money but the people’s money? Taxes, natural resources, public companies benefits, all belongs to the people and the government role is to manage it…
Negaraku! I missed Najib now, even he stole the goddamn money, still not my money!
Dei! Janji is Rm1.50/L BUKAN RM1.99/L! Anwar mudah lupa.
And who pays the difference?
Barisan Nasional bcoz PKR blamed previous price of RM 2.05/L is too high due to BN and Anwar can gip Rm1.50 petrol as long as the rakyat makes him PM. Now he is PM many years dy but still no Rm1.50 petrol. He lied to the rakyat.
Because.you vote UMNO at that time.
Hopefully we don’t get worse like French, Debt to GDP can grow from 2011 85% to almost 120%?! Majority of this French debt, like almost 60% of this debts goes to servicing to the publics and old infrastructure…..?
On the other side in Asean, we cannot get corrupted repeat like our Asean neighbours sudden share market collapsed, this recent year!
Syukur dulu, RM 599 dapat 300L petrol, if not thats gonna cost beyond RM 1000 during this Israel USA Iran conflicting time.
how about extend the EV tax holiday and remove the stupid cbu miti nonsense so more competition can push down EV prices further and push for more charging points? but better to put the country in more debt i guess
for melaka prn, right?
When sakau goes, the money actually know where to go.
Better let Govt bear the burden? Hello…..whose money you using? Taxpayers money wei…..get that clear please.
Aisey.. now hv to subscribe amazon prime coz landman season 2 is there
Stupid economic policy that burdens the people further. Stop trying to aim for nonsensical bragging rights with this RM1.99 nonsense. Villagers at the border towns that only ride motorbikes use only 50 liters of fuel per month. They still sell the balance of their monthly quota to Thais. Fuel smuggling happens on a large scale in small quantities. This dumb policy doesn’t slow down fuel smuggling at all.
For regular folks who do business and struggling to make ends meet, 300 liters a month is insufficient.
We all know that the global oil prices have shot up. And we all know that Pakatan was just boasting when they said they could bring down oil prices. And we know they have already spat on their own faces because in the past they used to say that a government who doesn’t know how to control fuel prices isn’t qualified to run the country.
Be practical. Raise the fuel prices to an acceptable figure like RM2.50 or RM2.60 if you have to. But remove the ridiculous and troublesome 300 liter per month cap. Start running the country based on practical solutions and not some ego-stroking unsustainable policy for the sake of bragging.
he wants to bankrupt this country
Meanwhile, the people themselves are not helping at all. Idling their cars and trucks for long periods just because fuel is cheap…
I have a neighbour who leaves the engine on idle for 1 HOUR EVERY morning to warm up the engine in both his cars….
Tq PMX, yg sembang boleh terbang tu rasa bagus sangat, sila beli tanpa guna IC.
Poyo je geng stroberi …
Then tax more on imported and CKD of foreign vehicles.. including bev.. make it more expensive to buy cars when gov already spent so much on public transport infrastructure. Encourage more use of public transport. Perhaps it is time to limit no of vehicles entering urban areas with high concentration of public transport… Ya. That should help reduce amounts of fuels
Guru, turunkan kuota 100L sebulan, utk motosikal lebih dari cukup, jangan sampai negara tergadai dek hutang
Diesel fuel very cheap. More and more lorries on the road, more lorry crashes, more people lose their lives. More cars on the road, more traffic jams, wasted manhours waiting in traffic jams.
RM1.99 can buy what. Change it according to current inflation rate. These are all election baits
Anwar decision in fuel issue is very good
Let’s take RM42B, means one month RM3.5B, divide by RM2.33 means around 1.5B litres, divide by 300L means around 5mil users fully utilise 300L. So where are those figures came from if previously said: “Based on actual BUDI95 usage data from October 2025 to June 2026, fewer than one per cent of BUDI95 users consistently consume more than 200 litres of RON95 per month. Somemore if divide by 200L is 7.5mil, out of 14.2mil users means over 50% already…
Get an EV, problem solve.