Confirmed: BUDI95 Quota Drops To 200 Litres In April, WFH Option Offered As Relief

As a supplementary relief measure, selected government agencies and private sector employers will be allowed to implement work-from-home arrangements on a phased basis to help offset rising fuel costs.

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Prime Minister Datuk Seri Anwar Ibrahim confirmed tonight (26 March) that the monthly fuel quota under the Skim Subsidi Budi Madani RON95 (BUDI 95) programme will be reduced from 300 litres to 200 litres beginning 1 April.

The subsidised price of RM1.99 per litre will remain unchanged.

The announcement, made via a livestreamed address, puts to rest speculations after press reports of the planned reduction, citing sources familiar with the matter.

Anwar described the move as part of a broader set of strategic measures to strengthen the country’s preparedness for the energy crisis.

In practical terms, eligible Malaysians will receive 100 fewer litres of subsidised fuel each month — a reduction of one third.

Any fuel purchased beyond the 200-litre monthly cap will be charged at the unsubsidised market rate.

Beyond The Quota, Prices Bite

That gap is now significant.

From today, unsubsidised RON95 costs RM3.87 per litre — 60 sen higher than yesterday, and a 45 per cent increase since 11 March.

For context, the subsidised price of RM1.99 per litre means every litre beyond the quota costs nearly double.

Other fuel categories have seen even steeper climbs:

RON97: RM5.15 per litre, up 58 per cent
Diesel: RM5.52 per litre, up 77 per cent

The increases reflect surging global oil prices driven by the ongoing conflict in the Middle East.

Fuel prices in Malaysia — including the subsidised rate — are benchmarked against global oil markets.

When crude prices rise, the government pays more to keep pump prices artificially low, and that gap comes out of public funds.

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Steady At The Pump, Smaller In The Tank

The Ministry of Finance faces a projected RM24 billion subsidy bill this year if crude prices stay high — a figure Anwar has cited as making rationalisation unavoidable.

Cutting the quota rather than raising the price lets the government reduce its subsidy exposure without a politically visible hike at the pump.

The math is simple: 100 fewer subsidised litres per driver, multiplied across millions of vehicles, adds up fast.

The RM1.99 price holds, but the difference shows up the moment the quota runs out — and at RM3.87 per litre beyond that cap, it shows up hard.

City drivers with smaller vehicles may still manage on 200 litres a month, but rural Malaysians, daily commuters, and those with larger vehicles will feel the squeeze sooner.

This is not the first adjustment since the targeted scheme launched.

The direction has been consistent: the subsidy net is narrowing, gradually and methodically — though complaints have already begun to roll in.

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East Malaysia Shielded, WFH On The Table

Anwar also confirmed that Sabah and Sarawak will continue to enjoy subsidised diesel at RM2.15 per litre, shielded from the price increases affecting Peninsular Malaysia.

The government cited the unique geographic and economic circumstances of both states as justification for the exemption.

Separately, as part of the broader response to rising fuel costs, selected government agencies and certain private-sector employers will be permitted to implement work-from-home (WFH) arrangements on a phased basis.

The move is seen as a practical measure to help Malaysians reduce their fuel expenditure as prices climb.

Not everyone is convinced.

Even before the policy is formalised, the mere mention of WFH has prompted questions online about whether Malaysian workers are ready for remote work — and whether home environments are conducive enough to stay productive.