Malaysians will soon be able to purchase RON95 petrol at RM1.99 per litre under the government’s new BUDI95 targeted subsidy programme, which takes effect 30 September 2025.



Prime Minister Datuk Seri Anwar Ibrahim said the initiative is aimed at easing the cost of living while ensuring subsidies reach the right groups. The programme covers all Malaysians aged 16 and above with a valid driving licence, capped at 300 litres per month.

Payments can be made by tapping MyKad at the pump or counter, or via participating apps such as Setel and CaltexGo. Anwar stressed that no registration is required, as the benefit will be applied automatically to citizens.



The subsidy will be rolled out in stages: police and military personnel on Sept 27, STR recipients on Sept 28, and nationwide from Sept 30. Ride-hailing drivers may apply for additional allocations, while non-citizens will continue to pay the market price, currently about RM2.60 per litre.

Petronas confirmed that the Setel app can be used for the subsidised price, provided users complete the e-KYC verification process. To verify, customers must go to their Setel profile, select Verify your account, submit their IC photo and a selfie, and wait for approval — which may take up to 24 hours.



Anwar added that savings from targeted subsidies would be reinvested into healthcare, education, and infrastructure, including rebuilding schools and clinics damaged in the recent Sabah floods. Past savings from diesel subsidies were used to fund the Sumbangan Asas Rahmah (SARA) cash aid programme.

“This is a bold step for the long-term benefit of the nation. Beyond cheaper fuel, we want the people to feel real improvements in schools, clinics, and roads,” he said.
The Ministry of Finance will announce further details soon and has urged the public to rely only on official government channels for updates.