No changes to T20’s BUDI95 fuel subsidy eligibility for now, says Loke

Malaysia’s fuel subsidy debate is heating up once again, but for now, the government appears to be keeping the subsidised pump price status quo firmly in place. Transport Minister Anthony Loke has confirmed that the BUDI95 RON95 fuel subsidy programme will remain unchanged, including continued access for the T20 income group.

Speaking at the Malaysia Commercial Vehicle Expo (MCVE) 2026 in Serdang, Loke reiterated that the government’s focus is on maintaining a subsidy mechanism that is simple, effective, and easy for Malaysians to use. “It is status quo for now,” he told reporters, adding that while subsidy rationalisation has long been part of the government’s agenda, “the most important thing is finding the best mechanism.”

According to Loke, the MyKad-based BUDI95 system remains the preferred approach because of its straightforward implementation and reduced risk of leakages. “BUDI95 is a simple system that allows all Malaysian citizens, using only their MyKad, to enjoy fuel subsidies within a controlled environment and quantity, while also minimising leakages,” he said.

The Transport Minister added that Cabinet discussions on the matter had been ongoing for some time, with consensus leaning heavily toward a streamlined system. “We have simplified the entire process, and the Cabinet has deliberated on this for a long time, with most cabinet members agreeing that it must be a simple system,” he explained.

Despite recent discussions around excluding wealthier Malaysians from subsidised RON95 fuel, Loke stressed that “there is no question of cutting subsidies for the T20 group for the time being.”

The comments come shortly after Prime Minister Datuk Seri Anwar Ibrahim revealed that the government had agreed in principle to review fuel subsidy rationalisation measures targeting higher-income earners. However, Economy Minister Akmal Nasrullah Mohd Nasir indicated that future eligibility may involve more than just household income, with fuel consumption and broader financial commitments also expected to be considered.

Critics of the proposed rationalisation have warned that removing subsidies too quickly could worsen inflationary pressures and further strain middle-income motorists already dealing with rising ownership and operating costs.