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BUDI95 fuel subsidy reform frees up RM4bil for aid programmes, says Amir Hamzah
['Fmt Reporters']
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PETALING JAYA : The targeted BUDI95 fuel subsidy programme has enabled the government to save between RM2.5 billion and RM4 billion annually, allowing it to allocate more funds for social assistance programmes, says finance minister II Amir Hamzah Azizan.
Speaking in the Dewan Negara today, Amir Hamzah said BUDI95 was introduced to ensure that eligible Malaysians remain protected from fluctuations in global fuel prices while reducing subsidy leakages to individuals and groups who do not qualify.
In an Utusan Malaysia report, Amir Hamzah said the annual fiscal savings depend on global crude oil prices, foreign exchange rates and actual consumption patterns.
Amir Hamzah said allocations for the Jualan Rahmah Madani programme, Early Schooling Aid and My50 pass had also been increased as part of the government’s efforts to address the rising cost of living.
Amir Hamzah said based on actual BUDI95 usage data from October 2025 to June 2026, less than 1% of BUDI95 users consistently consumed more than 200 litres of RON95 per month.