Malaysia Considers Raising Budi95 Monthly Fuel Quota to 250 Litres for P-Hailing Riders

In a move that could significantly benefit the nation's growing gig economy, the Malaysian government is studying a proposal to increase the monthly RON95 fuel subsidy quota under the Budi95 scheme for p-hailing (delivery) riders from the current 200 litres to 250 litres. Prime Minister Datuk Seri Anwar Ibrahim made the announcement today, responding directly to cost-of-operations concerns raised by riders.

Speaking after a dialogue session with several p-hailing riders, the Prime Minister acknowledged the financial strain caused by rising fuel costs and high daily mileage. “I listened to their grievances. Many of them are struggling with the current 200-litre cap, given the long distances they travel every day,” Anwar said. “I will bring this matter up for discussion in this week’s meeting. I will remind Communications Minister Datuk Fahmi Fadzil, and we will try to increase the quota by at least 50 litres to 250 litres.”

The Budi95 scheme originally offered a monthly quota of 300 litres, but the government reduced it to 200 litres effective April 1, 2026, as part of measures to control fuel subsidy expenditure amid rising international oil prices triggered by geopolitical tensions in the Middle East. The reduction had drawn criticism from delivery riders, who argued that their operational needs far exceed those of average commuters.

Industry observers note that p-hailing riders, who depend heavily on motorcycles for their livelihoods, often cover significantly higher daily distances compared to regular users. For many, the 200-litre cap has been insufficient, forcing them to either absorb higher costs or reduce their working hours. The proposed increase to 250 litres is expected to provide meaningful relief, potentially improving take-home pay and service sustainability for the estimated hundreds of thousands of riders across Malaysia.

The Prime Minister confirmed that the proposal will be submitted for further deliberation to the National Economic Action Council (NEAC), which is scheduled to meet later this week. The council is expected to evaluate the fiscal impact and implementation logistics of the adjustment. If approved, the new quota could take effect as early as next month.

This development comes as the government continues to refine its targeted subsidy framework under the Budi95 programme, aiming to balance fiscal prudence with support for vulnerable groups and essential service providers. The potential quota hike has been welcomed by p-hailing associations, who have long called for recognition of riders as a distinct category requiring special subsidy consideration.

“This is a positive step towards acknowledging the unique challenges faced by p-hailing riders,” said a spokesperson for the Malaysian P-Hailing Riders Association. “We hope the NEAC will approve this swiftly, and we look forward to further engagement on long-term solutions, including possibly a separate subsidy tier for gig economy workers.”

Further updates are expected following the NEAC meeting. In the meantime, riders are advised to continue using their existing Budi95 quota as usual while awaiting official confirmation of any changes.