Budi Madani RON95 Subsidy: How It Works and Who Qualifies

Key Takeaways

• BUDI95 gives Malaysians subsidised RON95 petrol at RM1.99 per litre, capped at 300 litres per month.
• Eligibility requires Malaysian citizenship, MyKad, and a valid driving licence.
• Rollout starts in phases from 27 September 2025, with full public access from 30 September 2025.
• Subsidy can be accessed via MyKad, petrol apps (Setel, CaltexGO, others to follow), or Touch ’n Go Wallet, with TnG’s BUDI95 feature rolling out in stages.
• The scheme excludes foreigners, companies, and foreign-registered cars, ensuring subsidies reach citizens.

Budi Madani, also branded as BUDI95, is Malaysia’s new fuel subsidy programme, replacing blanket subsidies with a targeted system.

Instead of everyone enjoying the same discount, only eligible Malaysians get RON95 at RM1.99 per litre. Non-eligible users, such as foreigners, businesses, and foreign-registered cars, pay the market price (around RM2.60 per litre) or switch to RON97.

From an accounting and fiscal perspective, this approach balances affordability for citizens with government spending discipline, as about RM11 billion is allocated to fund the scheme in 2025. 

When is BUDI95 Rolling Out?

The government is phasing the launch of BUDI95 to ensure a smooth transition and avoid system overload. The timeline is:

• 27 September 2025: First access for military and police personnel (around 300,000 members).
• 28 September 2025: Extended to Sumbangan Tunai Rahmah (STR) beneficiaries.
• 30 September 2025: Full nationwide rollout for all eligible Malaysians with MyKad + driving licence.

From 25 September 2025, Malaysians can start checking their eligibility via the official portal (budimadani.gov.my) or supported apps (TnG E-Wallet, Setel, CaltexGo).

Petrol stations have also been preparing with “dry runs” and contingency systems to handle the high volume of transactions during the early days of rollout, as past programs like the MyKasih have kindly taught us.

Who Qualifies for BUDI95?

The scheme prioritises Malaysians with everyday driving needs. To enjoy the subsidy, you need:

• Be above 16 years old
• A valid MyKad (with active chip).
• A valid Malaysian driving licence.
• Identity verification (eKYC) if using e-wallet apps.

Notably:

• Motorcycles and cars are eligible.
• E-hailing drivers may apply for a higher quota due to heavier fuel use.
• Foreign-registered vehicles must refuel with RON97, not RON95.

How Does the Subsidy Quota Work?

300 litres per person, per month.

Every eligible motorist gets:

• 300L/month of subsidised RON95 at RM1.99/L.
• No daily cap, use it for small refills or one big tank.
• After quota: normal market price applies at the pump.

Example:

• A compact car (40L tank, 5 refills/month) = 200L → Fully subsidised.
• A mid-size SUV (60L tank, 6 refills/month) = 360L → First 300L subsidised, last 60L at market price.

How to Claim the BUDI95 Subsidy

There are many methods, but here a comparison table for methods:

Step-by-Step Guide: Using BUDI95 via Touch ’n Go E-Wallet

TnG E-Wallet is the most convenient option since it works across all petrol brands. Here’s how:

1. Open TnG E-Wallet → tap “BUDI95” or find under More.
2. Select “Buy Fuel”.
3. Choose petrol station (auto-detect with GPS or select manually).
4. Enter pump number + fuel amount.
5. Confirm order & pay in-app.
6. Show QR code (valid for 10 mins) at the counter.
7. Refuel as normal with RON95.

If you pump less than prepaid, the balance is refunded instantly to your eWallet.

Setting Up: eKYC Verification on TnG E-Wallet

Before using BUDI95, you’ll need a one-time verification (eKYC):

• Scan your MyKad.
• Take a selfie.
• Fill in basic details.

Approval is usually instant, though it may take up to 7 days if manual checks are required.

Once complete, your BUDI95 status and remaining quota are visible in the app.

Why Did the Government Launch BUDI95?

For years, Malaysia’s fuel subsidy system worked on a blanket basis,  everyone enjoyed the same low RON95 price at the pump. While popular, this approach created several problems:

• High fiscal burden: Billions of ringgit were spent annually, straining the national budget.
• Unequal benefit: Wealthier households with bigger, fuel-hungry cars enjoyed a larger share of the subsidy.
• Foreign usage: Non-citizens and foreign-registered vehicles filled up on cheap RON95 that was never intended for them.
• Commercial fleets: Large companies with heavy vehicle use absorbed subsidies meant for everyday Malaysians.

The Targeted Solution

BUDI95 addresses these leakages by introducing a smarter, citizen-first approach:

• Identity-linked subsidies: Every transaction is tied to your MyKad and licence verification, ensuring only Malaysians qualify.
• Controlled quotas: Each driver receives 300 litres per month at the subsidised rate, preventing overuse.
• Digital distribution: Subsidies are delivered via apps like TnG E-Wallet, Setel, and CaltexGo, cutting manual checks and errors.

The Bigger Picture

By narrowing subsidies to verified Malaysians, the government expects to:

• Save billions of ringgit annually that can be redirected to healthcare, education, or infrastructure.
• Protect lower and middle-income groups, who feel fuel prices most directly.
• Ensure subsidies evolve with technology, making the process more transparent and less prone to abuse.

How Does BUDI95 Affect Drivers and Businesses in 2025?

BUDI95 is designed to ease fuel costs for Malaysians while making subsidy spending more sustainable. The impact differs across groups:

Everyday Drivers

• Up to RM180 saved per month if the full 300L quota is used.
• Works out to around RM0.61 per litre in savings.
• Ideal for commuters who refuel weekly.

E-Hailing Drivers

• Eligible for a higher monthly quota, since their fuel usage is naturally heavier.
• This helps reduce operating costs and keeps fares more competitive.

Read more: A Guide to Managing Money and Taxes in Gig Economy Malaysia

Small Businesses

• Lower petrol costs mean reduced logistics and delivery expenses.
• Everyday commuting for employees also becomes more affordable.

Government & the Economy

• Subsidy funds are channelled more effectively, avoiding wastage.
• Around 16 million Malaysians are expected to benefit.
• Long-term savings strengthen the government’s ability to fund other public services.

Should You Apply for Budi Madani (BUDI95) in 2025?

If you’re eligible, it makes sense to use it. The BUDI95 subsidy is free, resets monthly, and can help ease real household and business costs. 

With options like TnG E-Wallet and petrol apps, claiming it is becoming as simple as a normal refuel.

For drivers, e-hailing partners, and small business owners alike, this is a policy shift worth understanding, not just because it saves money, but because it signals how Malaysia is modernising subsidies for the long run.

Stay informed on financial policies that affect daily life, from fuel subsidies to tax updates, by following the latest insights here on Accounting.my.