BUDI95 fuel quota back to 300 litres: How will this affect motorists?

KUALA LUMPUR, Sept 3 — The Malaysian government has reinstated the higher monthly RON95 fuel quota under the BUDI Madani program, raising it back to 300 litres as of September 1. This decision took into consideration fuel supply management, economic performance, and the government's financial capacity, alongside catering to the needs of Malaysians who travel long distances and small traders who rely on vehicles for their livelihoods.

However, with the average monthly RON95 consumption estimated at around 100 litres, the implications for current consumers remain unclear. The 300-litre quota is not an allocation of free petrol but a monthly eligibility ceiling for subsidised RON95. For motorists who use less than 200 litres a month, the change is minimal as their consumption was already within the previous ceiling.

The restoration primarily benefits those who require higher fuel consumption, including those who need to travel long distances and small traders. The immediate impact on everyday consumption may be negligible for most motorists because their monthly consumption is already below 200 litres. However, for those who regularly surpass the 200-litre threshold, the change could result in substantial savings.

For example, a motorist using 250 litres a month would enjoy an extra 50 litres within the subsidised ceiling, potentially saving RM91.50 based on the government's RM1.83-per-litre subsidy rate. The fiscal impact on the government hinges on how much of the additional 100-litre ceiling is actually utilized, as well as the prevailing market prices of RON95 fuel.