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Malaysia raises fuel subsidy allowance to 300 litres monthly

The Ministry of Finance has restored the monthly entitlement limit under the Budi Madani fuel subsidy programme to 300 litres, effective immediately. The increase from the previous 200-litre ceiling applies to both petrol and diesel recipients.

LSN Malaysia · 1 September 2026

KUALA LUMPUR — Malaysia's fuel subsidy programme has been adjusted to provide motorists with greater monthly allowances, reversing a recent reduction in benefits. The Ministry of Finance announced that the basic monthly eligibility limit under Budi Madani has been raised back to 300 litres for both Budi95 petrol and Budi Diesel categories, effective from today.

The decision to restore the higher threshold comes after the allowance was previously reduced to 200 litres. Under the revised structure, eligible vehicle owners will once again receive subsidised fuel up to the 300-litre monthly cap, helping to ease the cost of motoring for Malaysian households.

The Budi Madani scheme, which targets eligible Malaysians based on income and vehicle criteria, continues to form a key component of the government's cost-of-living support measures. The restoration of the allowance is expected to benefit a substantial portion of the driving population who rely on the subsidy programme for their daily transportation needs.