Malaysia’s fuel subsidy bill triples to RM11b amid West Asia crisis, MOF says

KUALA LUMPUR, June 25 — The BUDI MADANI targeted fuel subsidy programme had benefited 14 million Malaysians and involved 11.1 billion litres of fuel as of May 31, 2026, the Ministry of Finance (MOF) said.

MOF said the sales value totalled RM22.1 billion, of which RM11.2 billion was borne by the government as a subsidy.

It said that since the advent of the West Asia crisis, BUDI MADANI subsidy spending has increased, on average, by threefold compared with the same period in 2025.

“The government will continue to monitor the implementation of the BUDI MADANI programme and will make appropriate improvements from time to time to ensure that assistance is distributed fairly, effectively and targeted to those who truly need it,” the ministry said in a written answer to the Dewan Rakyat published on the Parliament’s website yesterday.

MOF was responding to Datuk Seri Dr Ronald Kiandee (PN-Beleran) regarding the number of individuals who have benefited from the BUDI MADANI programme as of May 2026, the subsidy amount disbursed, the application approval rate, and the measures taken to ensure that all eligible groups are not left out of receiving the assistance.

The ministry emphasised that no application is required to receive BUDI MADANI because the eligibility criteria are clear and simple, namely Malaysian citizens holding a MyKad who also possess a valid driving licence of a qualifying class.

It said that to ensure eligible individuals do not miss out on this assistance, the MOF and the government have implemented various measures, including the provision of an eligibility and transaction verification portal, the BUDI MADANI customer service centre, and ongoing announcements via various media channels.

“In addition, the government continues to make improvements based on usage data and feedback received,” it added. — Bernama