The government announced a new adjustment for the RON95 petrol subsidy under the BUDI95 programme, with the eligibility limit reduced to 200 litres per month effective 1 April, compared to 300 litres previously.
According to Prime Minister Anwar Ibrahim, this decision was made as a precautionary measure following the escalating global geopolitical pressures, particularly the conflicts in West Asia which are affecting global energy supplies and prices.
The ongoing tensions in the region, including disruptions to strategic routes such as the Strait of Hormuz, have had a direct impact on the international oil supply chain.
Although Malaysia is still relatively stable thanks to the capabilities of the national oil company, Petronas, the country is still not exempt from the pressure of rising costs and global economic uncertainties.
In his special message, PMX stressed that this measure was taken to ensure that oil supplies remain secure and consumption can be managed more prudently without burdening the people.
Based on government analysis, the average consumption of RON95 petrol among BUDI95 recipients is only around 100 litres per month, while almost 90 percent use less than 200 litres.
This shows that the majority of the people will not be affected by the adjustment.
Despite the reduced subsidy limit, the government has maintained the price of RON95 at RM1.99 per litre, a decision that continues to differentiate Malaysia from many other countries that have increased fuel prices.
This move is seen as an ongoing effort to protect the people from the pressure of the increasing cost of living.
PMX also assured that this adjustment is temporary, depending on the global oil market situation and economic stability.
At the same time, he appealed to the people to understand the need for this move, which is described as a balanced approach between safeguarding the welfare of the people and ensuring the survival of the country's economy in a challenging global environment.
