Malaysia projects annual BUDI95 savings of RM2.5 billion to RM4 billion
The government says savings will support targeted aid, while the final fuel subsidy savings figure for 2026 will be determined at year-end.
Malaysia expects BUDI95 to deliver between RM2.5 billion and RM4 billion in annual savings, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat on October 28. The amount saved on fuel subsidies in 2026 will be finalised at year-end.
The final calculation will account for adjustments to actual transactions, weekly market prices, exchange rates and verified fuel consumption. Amir Hamzah was responding to Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh), who sought the year's actual savings figure.
The minister attributed the expected savings to targeted subsidies that reduce benefits going to non-citizens and ineligible consumers, alongside spending outside the government's social protection aims. He said the money would support assistance programmes including Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah.
Amir Hamzah also said the government was restoring the monthly BUDI95 eligibility limit to 300 litres, effective September 1, 2026, citing more stable fuel supplies. He put current subsidy spending at approximately RM4 billion a month.
He said the earlier reduction to 200 litres from 300 litres had been an initial targeted response to fuel supply uncertainty arising from the conflict in West Asia.
