Finance minister II: Too early to raise Budi95 quota back to 300 litres

PUTRAJAYA, June 22 — The government is not yet considering restoring the Budi95 monthly fuel quota from 200 litres to 300 litres, saying it is still assessing the impact of recent developments in the Middle East.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the ceasefire announced recently was still in its early stages and it remained unclear whether it would hold long enough to ease global oil market uncertainties.

“I think if we look at the developments, it is still very new. The temporary ceasefire only began on Friday, although it was announced on Monday. It will take 60 days for them to continue discussions.

“So we have to wait and see whether it can be sustained and what the overall implications will be,” he told reporters after presenting the implementation of the targeted diesel subsidy programme here today.

Amir Hamzah was responding to a question on whether Putrajaya was considering reinstating the Budi95 quota to 300 litres a month following recent declines in fuel prices.

He said the government’s priority remained ensuring Malaysians were protected from external shocks while keeping subsidy spending manageable.

“What’s important is that the government continues to protect the people. As I mentioned earlier, although the Budi95 quota was reduced from 300 litres to 200 litres, the impact has been manageable.

“More than 80 per cent of Malaysians use less than that quota,” he said.

He added that the government continued to encourage fuel-saving measures such as carpooling, working from home and more prudent fuel consumption.

“We also encourage people to use fuel wisely so that we can reduce pressure on the country,” he said.

Amir Hamzah said it was still too early to determine whether tensions in the Middle East had eased sufficiently to justify policy changes.

“Right now it is still new. Even so, we have already seen some easing in oil price pressures, although prices remain higher than before.

“But they are not as high as what we saw previously. Conditions may improve further. That is why unsubsidised fuel prices have also come down over the past three weeks,” he said.

The government temporarily revised the BUDI95 quota from 300 litres to 200 litres a month effective April 1, 2026 following the conflict in West Asia, while the subsidised RON95 price remains at RM1.99 per litre.