BUDI MADANI RON95 (BUDI95): What every motorist needs to know
Starting September 30, 2025, all Malaysian citizens aged 16 years old and above with a valid MyKad and driving licence will be able to purchase RON95 petrol at RM1.99 per litre, with a monthly eligibility of up to 300 litres. For e-hailing drivers, the government has set a higher allowance to reflect their heavier fuel usage.
This guide explains what BUDI95 is, why it was introduced, who qualifies, how the system works, and what it means for everyday motorists. Whether you are a student with your first motorcycle, a parent managing family expenses, or an e-hailing driver who depends on fuel daily, understanding the new rules will help you plan ahead.
What is BUDI95, and why was it introduced?
BUDI95 is a new fuel subsidy scheme under the BUDI MADANI initiative. Starting September 30, 2025, all Malaysian citizens aged 16 years old and above with a valid MyKad and driving licence will be able to purchase RON95 petrol at RM1.99 per litre, up to a monthly eligibility of up to 300 litres per month. For e-hailing driversthe cap will be higher to account for their greater fuel needs.
This move is part of the government’s effort to ensure that subsidies benefit Malaysians. Under BUDI95, eligibility for RON95 subsidies is restricted exclusively to Malaysians who meet the criteria.
The scheme is also designed to make the process simple. Motorists will not need to register separately. The system will verify eligibility automatically through MyKad readers at petrol stations, as well as through e-wallets like Setel.
Key features of the new RON95 subsidy scheme
The BUDI95 subsidy has a few clear rules that every motorist should know:
- Price: RON95 petrol is fixed at RM1.99 per litre for eligible Malaysians.
- Monthly cap:Each motorist can enjoy the subsidised price for up to 300 litres per month.
- E-hailing drivers: Those registered as e-hailing drivers are entitled to a higher eligibility balance due to their higher fuel usage.
- Start date: The scheme will take effect in phases, with full rollout to all Malaysians beginning on September 30, 2025.
- Verification: No registration is required. Subsidy access is automatic through MyKad readers at petrol stations or via e-wallets like Setel.
- Exclusions: Non-citizens and company-registered vehicles will not be eligible for BUDI95.
- Foreign-registered vehicles: The existing rule remains in force. Vehicles with foreign registration plates are not allowed to pump RON95 and must use RON97, even if the driver or passengers have a MyKad.
In short, this initiative ensures that Malaysians continue to enjoy affordable fuel, specifically RON95.
Who is eligible for BUDI95?
The government has kept the eligibility rules straightforward so that all Malaysians can benefit:
- Malaysian citizens only: You must have a valid MyKad.
- Valid driving licence: You need a current licence issued by JPJ (Jabatan Pengangkutan Jalan).
- All income levels: Unlike some past subsidies, BUDI95 applies to every Malaysian motorist, not just lower-income groups.
- Minimum age: Drivers must be of legal driving age (16 years old for motorcycles, 17 for cars).
- E-hailing drivers: Registered e-hailing drivers get a higher monthly fuel allocation.
Who is excluded?
- Non-citizens: Foreigners cannot access the subsidy.
- Company-owned vehicles: Cars and motorcycles registered under businesses are not covered.
- Foreign-registered vehicles: Must use RON97, as they are not allowed to pump RON95.
This broad eligibility means that whether you are a student, a retiree, or a working professional, you will be able to enjoy subsidised RON95 fuel with your MyKad and a valid driving licence.
How BUDI95 works in practice
The government has made the initiative as simple as possible so that motorists can start using BUDI95 without extra steps.
Verification at the pump
When you go to a petrol station, you will need to insert your MyKad into the card reader before fuelling. The system will automatically verify your eligibility and apply the subsidised price.
Using e-Wallets like Setel
For added convenience, motorists can use Setel and other supported e-wallets. With a one-time account verification using your MyKad, you can enjoy the BUDI95 price of RM1.99 without needing to verify your MyKad at the petrol station terminals.
Features such as One-tap fuelling let customers activate the pump directly from their vehicle, while Setel Lite ensures smooth performance on older mobile phones. Every transaction also earns up to three times Mesra Rewards points, adding extra value to every litre.
You can also monitor your BUDI95 balance in real time using the Setel app. It allows you to view both the pump price and the government-subsidised price directly on your receipt, providing a clear breakdown of your fuel subsidy.
If you’re not a Setel user yet, you can download and register with code c-swap10 to enjoy a one-time RM10 cashback upon completing your first cumulative transaction of RM20 within 7 days from the date of registration from now till 31 December 2025.
No separate registration
Unlike past government assistance programmes, you do not need to apply or sign up. As long as your MyKad chip is functional and your driving licence is valid, the system will recognise you automatically.
Monthly limit
The subsidy covers up to 300 litres per month. Once you exceed this cap, you will pay the unsubsidised price for additional fuel. E-hailing drivers will have a higher eligibility balance set by the government.
Phased rollout
- Sept 27, 2025: Police and Armed Forces personnel
- Sept 28, 2025: STR (Sumbangan Tunai Rahmah) recipients
- Sept 30, 2025: All eligible Malaysians with a valid MyKad and licence
This gradual rollout ensures the system is stable before everyone comes on board.
What you’ll pay: Subsidised vs unsubsidised price
Under BUDI95, the subsidised price of RON95 is fixed at RM1.99 per litre. This is the rate you will pay as long as you are within your monthly eligibility balance.
The unsubsidised price of RON95, which reflects the actual market value, is estimated at around RM2.60 per litre. This is the amount you will pay if you:
- Exceed your 300-litre monthly cap.
- Do not qualify for the subsidy (for example, non-citizens, expired driving license or company-owned vehicles).
Example scenarios
- Regular driver: If you pump 50 litres in a week, you pay RM99.50 under BUDI95 instead of about RM130 without subsidy.
- Family car usage: If you use 200 litres in a month, you pay RM398 under BUDI95 compared to RM520 without a subsidy.
- Exceeding the cap: If you use 350 litres in a month, the first 300 litres cost RM597 under BUDI95. The remaining 50 litres are charged at the unsubsidised rate, around RM130, bringing the total to RM727.
These examples show how much motorists can save, especially those who drive frequently.
Limitations, exceptions and things to note
While BUDI95 is designed to be simple, there are a few important points motorists should keep in mind:
- Monthly cap: Each motorist is entitled to up to 300 litres per month at the subsidised price. Registered e-hailing drivers will receive a higher eligibility balance.
- Foreign-registered vehicles: Will not be allowed to pump RON95, regardless of whether the driver or passengers hold a MyKad. These vehicles must use RON97.
- Non-citizens and companies: Foreigners and company-registered vehicles are not eligible for the subsidy and must pay the unsubsidised price or opt for fuel RON97
- Valid documents: Your MyKad chip must be functional, and your driving licence must be valid to ensure a smooth experience when enjoying subsidised fuel.
Being aware of these limitations helps you avoid surprises at the pump.
Impact and implications
For motorist
The main benefit is cost savings. At RM1.99 per litre, the subsidy helps households manage living expenses at a time when global fuel prices are volatile. The higher eligibility balance for e-hailing drivers also ensures that those who rely on driving for income are not disproportionately burdened.
For the government
By limiting the subsidy to Malaysian citizens with MyKad and driving licences, the government reduces unnecessary leakage to non-citizens and company vehicles. This allows billions in savings that can be redirected to other social aid programmes such as STR and SARA.
For society
The scheme aims to make the system fairer by ensuring that subsidies benefit Malaysians directly. However, there may still be challenges. MyKad chip issues, delays at petrol stations, or exceeding the fuel allowance could create frustration. Monitoring and enforcement will be important to maintain public trust.
Frequently asked questions
BUDI95 is Malaysia’s new targeted fuel subsidy scheme under the Budi Madani initiative. Starting September 30, 2025, eligible Malaysians can buy RON95 petrol at RM1.99 per litre, with a cap of 300 litres per month. Verification is automatic through MyKad readers at petrol stations or supported e-wallets like Setel, so no separate registration is needed.
All Malaysian citizens aged 16 years old and above with a valid MyKad and driving licence qualify for BUDI95, regardless of income level. E-hailing drivers are given a higher monthly eligibility balance due to their heavier fuel usage. Non-citizens, company-owned vehicles, and foreign-registered vehicles are excluded from the subsidy.
With BUDI95, motorists pay RM1.99 per litre instead of the estimated market price of RM2.60. For example, using 300 litres a month would cost RM597 with the subsidy, versus about RM780 without it. A driver using 300 litres would save nearly RM183 compared to unsubsidised rates.
No registration is required for BUDI95. The system automatically recognises eligible drivers through MyKad or a one-time e-wallet verification on apps such as Setel. As long as your MyKad chip and driving licence are valid, you will be able to access the subsidised fuel price.
Once you reach the 300-litre monthly eligibility balance limit (or higher eligibility balance for e-hailing drivers), any additional fuel purchases will be charged at the unsubsidised market price. This ensures that the subsidy benefits are fairly distributed.
BUDI95 was introduced to ensure fuel subsidies directly benefit Malaysians while reducing misuse from non-citizens and company-owned vehicles. The scheme also supports e-hailing drivers and allows the government to save funds to reinvest in other government assistance programs.
Some challenges include potential MyKad chip errors and potential long queues during the initial rollout. Motorists should also be aware of the monthly quota and exclusions to avoid unexpected charges at the pump.
CARs AEON Mall KB