B40 and M40 Groups Gain More From BUDI95 Fuel Subsidy

Minister of Finance II Datuk Seri Amir Hamzah Azizan announced on 7 November 2026 that Malaysia's B40 and M40 income groups receive greater financial benefits from the BUDI MADANI RON95 (BUDI95) fuel subsidy initiative than the T20 group, covering 16 million eligible Malaysians.

Speaking on a podcast broadcast via the Duit Faiz TikTok account, Amir Hamzah explained that station purchase records tracked through MyKad identification verify actual consumption patterns. The targeted programme lowers petrol prices to RM1.99 per litre from RM2.05, allocating up to 300 litres per month for each individual.

Key Facts

The BUDI95 initiative provides targeted RON95 petrol subsidies across Malaysia, capping fuel at RM1.99 per litre compared to the prior RM2.05 rate. The scheme allocates up to 300 litres monthly for 16 million eligible citizens verified via MyKad. **The BUDI95 targeted subsidy scheme sets RON95 petrol at RM1.99 per litre for up to 300 litres monthly per individual.**

Why Do B40 and M40 Groups Benefit More Than T20 From BUDI95?

B40 and M40 groups gain greater benefit from BUDI95 because longer daily commuting distances require higher overall fuel consumption than high-income earners. Although public perception links higher fuel use to larger engine capacities in T20 vehicles, real-time petrol purchase data proves lower-income motorists living far from urban centres consume more subsidised petrol.

According to Datuk Seri Amir Hamzah Azizan, centralised records from service stations nationwide contradict the prevailing assumption that upper-income motorists absorb the majority of the subsidy. Transaction data captured during fuelling provides precise verification of purchase patterns across income tiers.

"Sebenarnya, sekarang saya ada data yang sempurna... kerana tiap-tiap orang yang pakai subsidi, dia guna IC (MyKad) di stesen minyak dan kita ada rekod untuk setiap pembelian yang ada dalam negara ini. Jadi data semasa kami menunjukkan bahawa pengedaran antara B40, M40, T20, (subsidi minyak) banyak memberi manfaat kepada M40 dengan B40,"

Datuk Seri Amir Hamzah Azizan, Minister of Finance II

Amir Hamzah highlighted that geographic separation between affordable residential zones and commercial centres heavily influences consumption. A B40 worker commuting to Kuala Lumpur from peripheral locations such as Rawang or Seremban expends significantly more petrol than residents living in affluent central neighbourhoods such as Kenny Hills or Taman Duta.

**Real-time transaction data collected via MyKad confirms that Malaysia's B40 and M40 income groups consume a larger share of BUDI95 subsidised petrol than T20 earners.**

When Will the Malaysian Government Release Detailed BUDI95 Data?

The Malaysian government will release detailed data on BUDI95 fuel consumption within the next two months as officials refine transaction records. This upcoming explanation by the Ministry of Finance aims to correct widespread public misconceptions regarding petrol usage distribution and fuel subsidy allocation between the B40, M40, and T20 income categories.

The Ministry of Finance II is currently examining figures captured across domestic petrol stations to ensure an accurate representation of national fuel usage. Amir Hamzah noted that presenting this breakdown to the public is vital for establishing clarity on how assistance reaches intended demographics based on travel realities rather than engine size alone.

**The Ministry of Finance is scheduled to publish comprehensive BUDI95 petrol consumption and subsidy distribution data within two months.**

Who Is This For in Malaysia?

The BUDI95 initiative is designed for 16 million eligible Malaysians, focusing on B40 and M40 commuters who face long-distance daily travel between residential outskirts and city centres. Motorists residing in peripheral areas such as Rawang and Seremban who commute to Kuala Lumpur benefit substantially due to their significant recurring petrol requirements.

Implementation of the BUDI95 scheme occurred in progressive phases to manage deployment across service stations before opening to the general public:

**The BUDI95 fuel subsidy rolled out in stages starting 27 September for ATM and PDRM personnel before extending nationwide to 16 million Malaysians on 30 September.**

Common Questions

This section addresses essential questions regarding Malaysia's BUDI95 fuel subsidy initiative, including monthly petrol quotas, identity verification procedures, and consumption patterns across income groups. It clarifies eligibility rules, retail pricing mechanisms, and the logistical factors that determine how government assistance is distributed to motorists nationwide.

How much petrol can Malaysians purchase under the BUDI95 subsidy?

Under the BUDI95 initiative, each eligible Malaysian is entitled to buy up to 300 litres of RON95 petrol per month at the subsidised rate of RM1.99 per litre, reduced from the prior price of RM2.05 per litre.

How is BUDI95 petrol subsidy eligibility verified at fuel stations?

Subsidised petrol eligibility under BUDI95 is verified at service stations using each motorist's MyKad (IC). Every transaction across the country is recorded systematically, granting the government comprehensive data on petrol sales across B40, M40, and T20 income brackets.

Why do B40 motorists consume more petrol than T20 drivers under BUDI95?

B40 motorists consume more petrol because long-distance daily commutes from outer areas like Rawang or Seremban to Kuala Lumpur require significant fuel volumes, refuting assumptions that high-capacity T20 vehicles automatically draw a larger proportion of national petrol subsidies.

Sources and Methodology

This technical reference compiles reporting on the BUDI95 targeted fuel subsidy programme announced by the Ministry of Finance II. Information has been translated from the original Malay-language domestic news report published by Careta, with facts and official quotations cross-referenced against statements made on the Duit Faiz TikTok podcast.

**This reporting synthesises official fuel subsidy figures and policy announcements translated from the original Malaysian news coverage published by Careta.**

Original report: Careta

Information in this report was translated from the original Malay source text. No currency conversions were required as all financial figures were originally reported in Ringgit Malaysia (RM). This article is based on the source report above and was last updated on 8 November 2026.