PUTRAJAYA — The government is bearing petrol and diesel subsidies estimated at up to RM4 billion a month under the implementation of the BUDI Madani RON95 (BUDI95) and BUDI Diesel programmes, following the rise in global crude oil prices.

The Ministry of Finance (MOF) said in a statement today that the prolonged conflict in West Asia has exerted pressure on global energy markets, with crude oil prices now exceeding US$100 (RM399) per barrel, significantly increasing the country’s subsidy burden.

Subsidies for RON95 and diesel for January 2026 amounted to about RM0.7 billion.

“With the Madani government’s decision to maintain the BUDI95 price at RM1.99 per litre for the rakyat and diesel at RM2.15 per litre for targeted groups, the subsidy burden continues to rise.

“Based on market prices two weeks ago, when Brent crude was around US$90 per barrel, petrol and diesel subsidies were estimated at RM3 billion per month

“Now, with crude oil prices reaching US$100 per barrel, the subsidy bill is estimated to rise to around RM4 billion per month,” the statement said.

In a special address today, Prime Minister Datuk Seri Anwar Ibrahim said the government would temporarily adjust the BUDI95 eligibility quota from 300 litres to 200 litres per month, effective April 1, 2026, following the West Asia conflict.