KUALA LUMPUR - Prime Minister, Datuk Seri Anwar Ibrahim today called on the public to understand the temporary reduction of the Budi Madani RON95 (Budi95) quota from 300 litres to 200 litres per month, effective April 1.

He said the decision was made after careful review of global economic pressures caused by the ongoing conflict in West Asia.

Anwar, who is also Finance Minister, said the adjustment is temporary until global oil markets and supply conditions improve, although there are no clear signs of recovery yet.

“I sincerely appeal for the people's cooperation and understanding and I believe there will be various accusations and interpretations that we cannot avoid. But rest assured, I do not want the people to feel burdened, and the measures we are taking are very careful and prudent.

“l therefore appeal to the people and colleagues to understand that this step is necessary to safeguard the interests of the majority.

“It is not easy and may cause some inconvenience to certain segments of the people. I seek your understanding and cooperation so that we can continue efforts to prevent leakages," he said in a special address last Thursday.

Despite the quota reduction, the Budi95 fuel price will remain at RM1.99 per litre to help reduce the burden on the public.

The Prime Minister also urged enforcement agencies to strengthen monitoring to prevent misuse of fuel subsidies.

“We cannot provide subsidies and then witness smuggling activities reaching hundreds of millions of ringgit each month.

“Therefore, a stern warning must be issued now, and any act of smuggling will face the full force of the government machinery,” he said.

In addition to the quota reduction, new rules have been introduced affecting foreigners and foreign‑registered vehicles. 

From April 1, foreign‑registered vehicles will be prohibited from purchasing subsidised RON95 petrol, anyone caught doing so may face legal action as enforcement is strengthened under the domestic trade ministry.

For motorists who are not eligible for the Budi95 subsidy, including most foreigners and foreign‑registered vehicles, fuel costs have effectively increased in recent weeks. 

According to the latest weekly pricing updates, normal (non‑subsidised) RON95 petrol was trading around about RM3.87 per litre and RON97 around RM5.15 per litre in Peninsular Malaysia for the week of 26 March to 1 April 2026, significantly higher than the subsidised RM1.99 per litre rate. 

This means that for foreigners or anyone without subsidy eligibility, fuel costs have risen sharply, reflecting the market price rather than the subsidised rate offered under the Budi95 scheme. 

These higher retail prices are part of broader price movements linked to global oil market volatility. 

Anwar also thanked members of the public who report abuse at petrol stations to authorities or through social media.