RON95 300-Litre Quota Return Helps Households Manage Transport, Daily Expenses

KUALA LUMPUR, Aug 30 (Bernama) -- The return of the basic monthly Budi MADANI RON95 (BUDI95) quota to 300 litres, from the previous 200 litres, will provide households with greater flexibility in managing transportation costs, particularly those that rely heavily on private vehicles.

Economics lecturer at the Faculty of Business and Management, Universiti Teknologi MARA (UiTM) Sabah branch, Herniza Roxanne Marcus, said the benefit was expected to be more significant for lower- and middle-income groups (B40 and M40) with high travel needs, as fuel expenditure accounts for a larger share of their disposable income.

“For example, in Sabah, travel distances and more limited public transport options in some areas make this additional flexibility particularly relevant.

“Reducing the pressure on fuel expenditure could provide households with some room to allocate their income to other needs such as food, education and daily expenses,” she told Bernama.

Prime Minister Datuk Seri Anwar Ibrahim, when delivering the 2026 National Day address in Putrajaya today, announced that the government had agreed to restore the basic BUDI95 quota from 200 litres to 300 litres per month, benefiting more than 16 million users of subsidised RON95.

In addition, Anwar said more than half a million eligible owners of diesel-powered pickup trucks and jeeps would also receive up to 400 litres of BUDI Diesel per month, effective Sept 1.

Herniza said that although the impact of the return of the BUDI95 quota was expected to be moderate and would not necessarily lead to a direct reduction in the inflation rate, the measure could help contain transportation cost pressures and reduce the risk of spillover effects on the prices of other goods and services.

“This decision is seen as a form of balancing between the government’s fiscal capacity and the need to protect the people’s welfare and purchasing power, and does not necessarily indicate that the government’s fiscal position is now much more comfortable.

“The reduction in the quota previously took place amid geopolitical uncertainty and pressure on global energy markets. As risks and market conditions change, the government has room to reassess the level of subsidies based on current costs, actual consumption patterns and their impact on households,” she said.

Meanwhile, journalist Rozainah Abdul Rahim, 36, who relies heavily on a private vehicle, said the return of the quota provided relief after the previous 200-litre quota was insufficient to meet her monthly travel needs.

She said she frequently ran out of quota as she needed to use her car daily for coverage assignments, as well as travel between Port Dickson, Negeri Sembilan and Kuala Lumpur every week for family matters.

“I would like to thank the government for returning the basic BUDI95 quota to 300 litres per month, as this initiative is much needed to help the people cope with the current cost of living,” she said.

-- BERNAMA