What is the BUDI95 programme and its benefit for RON95 petrol users?

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The BUDI95 Programme and its Benefit for RON95 Petrol Users

The BUDI95 programme is a government initiative designed to provide a targeted subsidy for RON95 petrol. This programme ensures that eligible citizens can purchase RON95 petrol at a fixed price of RM1.99 per litre, thereby shielding them from fluctuations in global oil prices. This policy aims to direct financial assistance specifically to those who require it, while also minimising potential wastage or misuse of subsidies.
Targeted Subsidy for RON95 Petrol

The BUDI95 programme functions as a targeted subsidy mechanism, specifically aimed at beneficiaries who meet certain criteria. This approach is part of a broader government strategy to manage the impact of rising global energy costs on the Malaysian populace. By focusing assistance on specific groups, the government aims to ensure that the benefits reach the intended recipients effectively.
Fixed Price for Eligible Citizens

A key benefit of the BUDI95 programme is the establishment of a consistent price point for RON95 petrol. Eligible citizens are able to purchase this fuel at RM1.99 per litre, regardless of prevailing international market rates. This fixed price offers a degree of certainty and affordability for daily transportation needs for those enrolled in the programme.
Mitigation of Global Oil Price Impact

As an oil-producing nation, Malaysia leverages its domestic production to cushion the effects of global oil price surges. The revenue generated from oil exports, such as the dividends from Petronas, contributes to the national funds that enable initiatives like BUDI95. This allows the government to absorb some of the cost increases that would otherwise be passed directly to consumers, distinguishing Malaysia's approach from countries that solely rely on purchasing oil at market prices.

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What is the BUDI95 programme and its benefit for RON95 petrol users?

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