KUCHING: Malaysia will reduce subsidised petrol eligibility under BUDI MADANI RON95 (BUDI95) to 200 litres monthly from April 1 while tightening diesel controls nationwide to manage supply risks triggered by escalating Middle East tensions.
Prime Minister Datuk Seri Anwar Ibrahim said the adjustment under the BUDI95 programme is a temporary measure to ensure fuel availability amid global uncertainty linked to disruptions in the Strait of Hormuz and wider regional conflict.
“Food supplies will be affected, prices will increase, fertiliser will also be impacted, and so will oil and gas,” he said in a live broadcast nationwide today.
Despite the adjustment, Anwar stressed that the subsidised RON95 price would remain at RM1.99 per litre, noting that nearly 90 per cent of Malaysians consume below 200 litres monthly and would not be affected.
“To ease the burden on the people, I stress that BUDI95 remains at RM1.99 per litre,” he said.
The government will also maintain the subsidy ceiling of up to 800 litres per month for e-hailing drivers and gig workers to support their livelihoods.
At the same time, Sabah and Sarawak will continue to receive subsidised diesel at RM2.15 per litre despite rising global prices, taking into account logistical and geographical challenges in both states.
Anwar said limits on diesel purchases per transaction would be introduced to prevent hoarding and smuggling, which he described as causing losses amounting to hundreds of millions of ringgit each month.
“We cannot provide subsidies and then allow smuggling that reaches hundreds of millions of ringgit every month,” he said.
He added that stricter enforcement would be carried out nationwide to curb leakages, warning that offenders would face firm action.
The Prime Minister also said Putrajaya is considering phased work-from-home arrangements for selected public sector offices, while encouraging private companies to adopt similar measures to reduce pressure on fuel demand.
Anwar said Malaysia remains relatively resilient due to the strength of Petroliam Nasional Bhd (PETRONAS), but warned the country cannot assume it will be spared from global supply shocks arising from the conflict involving the United States, Iran, Israel and several Gulf states.
“We are in a better position, but this does not mean we are completely unaffected,” he said.
