Malaysia Plans Targeted Fuel Subsidy Cut to RM1.99 Per Liter from September 30

Malaysia will implement a targeted fuel subsidy program called BUDI MADANI RON95 starting September 30, 2025, reducing the subsidized price of RON95 petrol for Malaysian citizens to 1.99 ringgit per liter from the current 2.05 ringgit. This subsidy applies to all Malaysians with a valid driver's license and is capped at 300 liters per month, with ride-hailing drivers eligible for higher allocations. Non-citizens will pay the unsubsidized price of approximately 2.60 ringgit per liter. The program will be rolled out in phases, beginning with police and military personnel, followed by recipients of government aid programs, and then all eligible Malaysians, with purchases requiring MyKad verification and payment options including e-wallets and fuel apps. Savings from the subsidy adjustments will be redirected to social welfare programs and improvements in healthcare, education, and infrastructure. This move aims to narrow Malaysia's budget deficit while supporting cost of living relief for citizens.