Petrol Subsidy in Malaysia: RON95 Price from 30 September 2025

In Malaysia, petrol subsidy has always been an important part of daily life. For decades, the government has kept fuel prices low through subsidies, helping households manage living costs. See this week’s petrol prices updates here.

Now, in 2025, petrol subsidy is once again in the spotlight. Under a new plan, Malaysians will enjoy cheaper RON95 fuel. Starting 30 September 2025, the price of RON95 is fixed at RM1.99 per litre, down from RM2.05, as announced by Prime Minister Datuk Seri Anwar Ibrahim.

The rollout started in phases:

• 27 September 2025: Police and armed forces.
• 28 September 2025: STR recipients (mainly from the B40 group).
• 30 September 2025: All Malaysians.

Eligible groups include: 

• Malaysians with a valid MyKad and driving licence.

This initiative, part of the Budi95 scheme, aims to support Malaysians while ensuring government funds are used more efficiently.

So, how does this petrol subsidy work, and what should you know before heading to the pump?

What Is a Petrol Subsidy?

A petrol subsidy is when the government pays part of the fuel cost, allowing citizens to buy it at a lower price. In Malaysia, where millions rely on cars and motorcycles every day, this is essential.

The goals of a petrol subsidy are clear:

• Reduce living costs for families.
• Keep fuel affordable.
• Protect Malaysians from global oil price changes.

Malaysia has adjusted its subsidy system many times. The 2025 BUDI95 subsidy is another step forward, offering real help while reducing costs.

How the 2025 BUDI95 Subsidy Works

The BUDI95 scheme, also known as the Budi Madani RON95 programme, is Malaysia’s latest targeted petrol subsidy introduced in 2025. Under this scheme, the price of RON95 petrol is fixed at RM1.99 per litre for all Malaysian citizens with a valid MyKad and driving licence.

The initiative is designed to ease living costs while making subsidy spending more sustainable by focusing benefits on citizens only, rather than companies or foreigners.

Each person can buy up to 300 litres of subsidised fuel per month. For most households, this covers daily travel needs. E-hailing drivers can apply for higher limits since they consume more petrol.

How to Claim the Petrol Subsidy

There is no need to apply, all you need is a MyKad to automatically enjoy the petrol subsidy. 

• Use your MyKad at the pump or cashier.
• Pay through apps like Setel or Touch ’n Go, which are linked to your IC.

Petrol stations are being fitted with MyKad reader machines for quick verification. Digital apps also make the process faster and provide a smoother customer experience.

Who Is Not Eligible for the Subsidy?

The subsidy is reserved for Malaysians. Excluded groups include:

• Foreigners.
• Foreign registered companies and corporate vehicles.
• Malaysians driving foreign-registered cars.
• Malaysians with expired driving licenses.

These groups will need to pay the unsubsidised price of around RM2.60 per litre. This ensures taxpayer money benefits citizens directly.

Petrol Prices: Malaysia vs Other Countries

At RM1.99 per litre, Malaysia’s fuel is among the cheapest in the world. Here’s how it compares:

This shows just how much Malaysians save thanks to the subsidy, especially when compared to neighbouring countries.

Why the Petrol Subsidy Matters

The new subsidy is about more than just cheaper fuel. The government positioned it as a way to ease daily costs and as a gesture of appreciation for Malaysians.

At the same time, it is designed to prevent misuse and ensure long-term savings. By targeting only eligible Malaysians and setting monthly limits, the government can redirect funds to:

• Improve healthcare.
• Strengthen education.
• Build infrastructure that supports economic growth .

This makes the subsidy both a short-term relief and a long-term strategy.

Impact on Daily Life

At first glance, six sen per litre may not seem like much. But over time, it adds up. A driver with a 50-litre tank could save about RM30 each month or RM360 a year. For households with multiple vehicles, the savings are even greater.

The subsidy also makes refueling stress-free. With no registration needed and digital apps available, the process is quicker and easier than ever.

The Future of Petrol Subsidy in Malaysia

While the subsidy is welcomed, there are questions about how long Malaysia can keep prices so low. Oil prices around the world go up and down, and the government will need to review the policy from time to time.

For now, though, the subsidy provides real help, easing costs for citizens while keeping government spending more focused.

Conclusion

The petrol subsidy in Malaysia is more than just a discount at the pump. By setting RON95 at RM1.99 per litre, the government has given Malaysians meaningful support in 2025.

It’s designed to be simple, fair, and practical. With one of the lowest fuel prices in the world, Malaysia’s petrol subsidy shows both appreciation for citizens today and planning for the future.

So, the next time you refuel and see RM1.99 on the screen, remember this petrol subsidy is not just about cheaper fuel. It’s part of a bigger plan to support Malaysians now, while keeping the country strong for tomorrow.

Further Reading (Official Sources)

• Ministry of Domestic Trade and Cost of Living (KPDN) – Fuel Pricing Announcements
• Ministry of Investment, Trade and Industry (MITI) – Economic Updates
• Petrol Subsidy Information – Malaysia Government Portal

Sources:

1. https://www.thestar.com.my/news/nation/2025/09/22/ron95-priced-at-rm199-for-eligible-m039sians-from-sept-30-says-pm
2. https://paultan.org/2025/09/22/rm1-99-ron95-starts-on-sept-30-for-all-malaysians-pdrm-atm-sept-27-str-recipients-sept-28-pmx/ 
3. https://www.therakyatpost.com/news/2025/09/22/pmx-all-malaysians-with-mykad-and-drivers-licence-get-ron95-subsidy/ 
4. https://www.globalpetrolprices.com/gasoline_prices/ 
5. https://www.mof.gov.my/subsidy-policies-updates 
6. https://www.malaymail.com/news/malaysia/2025/09/22/anwar-ron95-subsidy-for-all-malaysian-drivers-with-mykad-license-from-sept-30/191899 
7. https://www.malaymail.com/news/malaysia/2025/09/22/budi95-explained-who-qualifies-how-to-claim-and-when-it-starts/191929
8. https://soyacincau.com/2025/09/22/malaysia-ron95-foreigner-unsubsidised-petrol-rm2-60/
9. https://www.truckandbusnews.net/skps-ron95-subsidy-registration/
10. https://soyacincau.com/2025/09/23/budi-madani-ron95-petrol-tng-ewallet-rm1-99-qr/
11. https://www.setel.com/budi-madani-ron95-subsidy
12. https://www.malaymail.com/news/malaysia/2025/09/22/budi95-explained-who-qualifies-how-to-claim-and-when-it-starts/191929
13. https://www.thestar.com.my/news/nation/2025/09/24/transport-minister-urges-over-920000-motorists-to-renew-expired-driving-licences-for-ron95-subsidy

Petrol Subsidy Malaysia: FAQs