Why Was the BUDI95 Quota Cut, Then Restored? MP Presses Finance Minister

Malaysia’s subsidised petrol quota is back in the spotlight in Parliament today. Opposition MP Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh) will ask the Finance Minister why the BUDI95 quota was cut from 300 litres to 200 litres before being raised again on 1 September 2026.

BUDI95 Petrol Quota Under Scrutiny in the Dewan Rakyat

The cut was announced in March by Prime Minister Anwar Ibrahim as an interim measure while the Middle East conflict hit energy markets. He said average usage was about 100 litres a month, so nearly 90 per cent of users would be unaffected.

In July, he defended the limit again, saying fewer than one per cent of users consistently exceeded 200 litres.

Then the government reversed course. Ahead of Budget 2027, it restored the 300-litre quota for BUDI95 petrol and Budi Madani Diesel from 1 September, citing better supply management, stricter enforcement and sound finances.

The Finance Ministry also pointed to Malaysians who travel long distances and to small traders who depend on their vehicles.

Subsidised RON95 still sells at RM1.99 per litre. Today’s question puts the government on the spot over the reasoning behind both the cut and the reversal.