BUDI95 LIMIT ADJUSTMENT A STRATEGIC MOVE TO SAFEGUARD NATIONAL RESOURCES - ACADEMICIAN

By Soon Li Wei

KUALA LUMPUR, March 26 (Bernama) -- The temporary adjustment of the monthly purchase limit for the Budi MADANI RON95 (BUDI95) petrol programme is a strategic and proactive step towards safeguarding national resources and ensuring subsidy integrity, an academician said. 

Universiti Putra Malaysia (UPM) Faculty of Human Ecology senior lecturer Dr Mohd Amim Othman said the government's decision to adjust the limit to 200 litres from 300 litres per month was a calculated move aimed at curbing leakages and addressing long-standing fuel smuggling at border areas.

He noted that the measure remained consumer-friendly as it allowed for flexibility within households.

“Individuals consuming more than 200 litres may utilise the unused quota of other family members,” he told Bernama. 

Prime Minister Datuk Seri Anwar Ibrahim today announced that the individual monthly limit for the purchase of BUDI95 will be temporarily adjusted to 200 litres per month from 300 litres per month previously, effective April 1, following the ongoing conflict in West Asia.

Nevertheless, Prime Minister Datuk Seri Anwar Ibrahim said the subsidised RON95 price will remain unchanged at RM1.99 per litre.

In addition, Mohd Amim described the decision to retain the 800-litre fuel quota for e-hailing drivers as a practical step, given the group’s heavy reliance on fuel to generate income.

“The subsidy acts as direct economic support, and the government can leverage accurate consumption data from e-hailing companies to implement more data-driven policies,” he said.

Mohd Amim further suggested introducing a special pricing mechanism for RON97 for foreign vehicles, particularly in border areas such as Johor and the northern Peninsular.

“Demand for RON97 tends to be higher in these areas, likely driven by foreign vehicles. Without proper controls, this could affect domestic supply, hence the need for targeted measures to prioritise local consumers,” he said.

Commenting on unbalanced criticism and anti-government narratives from certain quarters, Mohd Naim said they did not reflect the broader reality of the nation’s economic resilience.

He said such narratives might create a sense of dissatisfaction, but a comparison with regional peers showed that Malaysia remained a leader in maintaining economic stability.

“In reality, compared to many neighbouring countries, Malaysia remained relatively stable in managing fuel price pressures and the overall cost of living,” he said.

Meanwhile, Universiti Sains Islam Malaysia (USIM) Faculty of Economics and Muamalat professor Dr Nuradli Ridzwan Shah said the government should implement price monitoring to prevent any parties from taking advantage of the situation, particularly through profiteering involving essential goods.

He also welcomed the government’s plan to introduce more flexible working arrangements, including working from home, for civil servants to reduce the impact of global oil supply disruptions.

In his special address today, Anwar, who is also Finance Minister, said the measure would be implemented in phases and on a selective basis.

The Prime Minister also urged the private sector to adopt work-from-home arrangements, as practised by some companies and banks.

-- BERNAMA