Malaysia has restored the monthly Budi Madani RON95 petrol subsidy quota from 200 litres back to 300 litres, starting today, September 1, 2026 [1, 2, 3, 4, 5, 6, 7, 8, 9]. The monthly diesel quota for eligible users, including private diesel-powered pick-up truck and jeep owners, has also been raised to 400 litres, an increase that includes an extra 100 litres for qualifying four-wheel-drive vehicles [1, 2, 3, 4, 5, 6, 7, 8, 9].

The subsidised prices remain unchanged at RM1.99 per litre for RON95 petrol and RM2.10 per litre for diesel [4, 5, 6, 7, 8, 9]. More than 16 million Malaysians benefit from the subsidised petrol quota, while over 700,000 users qualify for subsidised diesel [5, 6, 7, 8, 9]. Over 500,000 private diesel vehicle owners are eligible for the additional diesel allocation [4, 8, 9].

Prime Minister Datuk Seri Anwar Ibrahim announced the quota restorations on August 30 during the National Day Eve address, stating, "The economic growth of the country must be returned to the people" and, "I had to find a way and take a step that would provide relief to the people" [1, 5, 10].

Earlier in 2026, the Budi Madani petrol quota was reduced from 300 litres to 200 litres due to elevated global crude oil prices linked to regional conflicts [1, 2, 3, 5, 6, 7]. The diesel basic allocation was set at 200 litres in June 2026 [6, 7].

Existing subsidy recipients do not need to reapply to receive the increased quota. New applications for the additional 100-litre diesel allocation can be submitted via the official budimadani.gov.my portal [4, 8, 9].

The government has emphasized continued enforcement against subsidised fuel leakage and abuse to ensure benefits reach genuine users [11]. Consumer advocates have supported the quota restorations. Dr Saravanan Thambirajah, CEO of the Federation of Malaysian Consumers Associations, said fuel can be part of the cost of earning income, not just a lifestyle expense [11]. Legal adviser Sukhdave Singh of the Malaysia Consumers Movement said restoring the diesel quota to 400 litres is a "welcome and necessary adjustment" after a mistaken initial reduction [11].

The quota increases are aimed at easing living costs for households and small businesses ahead of the 2027 Budget [1, 2, 3, 5, 6, 7].