1st April - No Fools For BUDI95 Subsidy and Offender

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With official announcement by our Prime Minister,  Dato' Seri Anwar Ibrahim on 26 March 2026, the government will reduce the monthly BUDI95 allocation for public from April 1st due to rising oil prices caused by the US-Iran war. Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup (KPDN) will also introduce new action from the same date. Netizen and Citizen of Malaysia will be anticipated to face the following:

• Public will only entitle to 200 L of subsidized petrol instead of the 300 L 
• KPDN will block foreign cards for BUDI95 purchase
• Good news that e-hailing drivers will maintain their 800 L allocation for the time being.

⛛Why Malaysia (as a major oil producer) still "suffers" when oil prices fly

It’s the classic Malaysian Mamak argument: "We produce oil, why is our petrol so expensive?" Here’s the "Economy 101 for Netizens" breakdown:

• We sell the "Premium" stuff, but buy the "Regular": Malaysia produces high-quality "sweet" crude (Tapis blend) which is expensive and in high demand globally. We export that for top dollar. But our local refineries aren't enough to cover everything we drink, so we end up importing refined petrol (the stuff you actually put in your Myvi) at market rates.

• The Subsidy Paradox: When global oil prices go up, the government gets more money from Petronas (Yay!), but then they have to spend even more of that money to keep your RON95 at RM1.99 (Stressful-nya).

• 2008 PTSD: Remember June 2008? Global oil hit $147/barrel, and the government hiked petrol from RM1.92 to RM2.70 overnight. That was a 40% jump. At today's market rate of RM3.87/L, the "gap" the government is covering is massive. They’re basically paying for half your tank right now.

⛛Other solutions to this issue? (Besides cutting our 100L)

Cutting the BUDI95 allocation from 300L to 200L is the "easy" fix, but it's like putting a plaster on a broken leg. What else could we actually do?

• The "Cash is King" Method: Instead of messing with pump prices and MyKads (which we know will lead to "pinjam MyKad" or "technical glitches"), just float the price to RM3.87 and bank-in RM150–RM200 directly to eligible people every month. No more "leakage" to foreign cars, no more complicated apps. It is easier to control that way than monitoring the whole population. 

• The Public Transport "Real Talk": We keep building MRTs and LRTs, but if the "first mile, last mile" still requires a 20-minute walk in 35°C heat, people will stay in their cars. Real solution? Massive investment in feeder buses that actually show up.

• Strict Border Tech: KPDN is blocking foreign cards, which is a start. But until we have AI-powered plate recognition at every border station, "petrol tourism" will always find a way.

• EV Incentives for the M40: Not just RM200k Teslas. We need more RM60k–RM80k electric "kancil-tier" cars so the average Joe can actually quit the petrol habit for good.

What do you think? Is 200L enough, or are the "cash-at-the-counter" geniuses actually onto something? Let me know in the comments.

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Authored by @ipohboymedia with the aid of #AI 

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