share on
Under the new system, the total distance travelled by each e-hailing driver will be calculated using data recorded by all e-hailing operators. This process will be overseen by APAD and LPKP in Sabah and Sarawak.
Prime Minister and Minister of Finance of Malaysia (MOF), Anwar Ibrahim announced on 4 November 2025 (Tuesday) enhancements to the BUDI MADANI RON95 (BUDI95) subsidy, particularly for e-hailing and airport taxi drivers.
Per a press release by the ministry, this initiative — shaped through collaboration between MOF, Ministry of Transport (MOT), Ministry of Domestic Trade and Cost of Living (KPDN), Land Public Transport Agency (APAD), and key e-hailing operators (EHO) — reflects a joint effort to make targeted subsidies fairer and more inclusive, while supporting the livelihoods of drivers who keep Malaysia moving.
Tiered scheme for e-hailing drivers
For e-hailing drivers, the Government has introduced a BUDI95 tiered qualification scheme which will be activated in the middle of each month.
The monthly qualification ceiling under BUDI95 will vary based on the total e-hailing distance recorded in the EHO system from the previous month, as outlined below:
| E-hailing trip distance (previous month) | Additional BUDI95 qualifications requirements | Total allowance (including 300 litres of base) |
| Less than 2,000km | No extras | 300 litres |
| 2,000 - 5,000km | 300 litres | 600 litres |
| Over 5,000km | 500 litres | 800 litres |
Under the new system, the total distance travelled by each e-hailing driver will be calculated using data recorded by all EHOs. This process will be overseen by APAD and LPKP in Sabah and Sarawak.
EHOs are required to submit accurate and complete monthly travel records of their drivers to APAD and the respective LPKPs at the start of each month. This new travel distance threshold value is set based on MoF's study of e-hailing travel distance data submitted by EHO as well as actual BUDI95 usage data by e-hailing drivers as of September 2025.
To ensure fairness, the minimum qualification threshold has been lowered from 3,000km to 2,000km, while a new tier for drivers exceeding 5,000km has been introduced. This adjustment takes into account unrecorded movements made without passengers.
This step ensures that the total BUDI95 qualification for each tier is sufficient to cover the daily travel distance for most e-hailing drivers.
The government will continue to monitor the implementation and use of e-hailing drivers to ensure the best mechanism for all parties in the long term.
Implementation for airport taxi drivers
Meanwhile, airport taxi operating companies can now apply for fleet cards under the SKPS operated by the Ministry of National Economy, in line with the existing implementation for the taxi and rental car categories which are eligible to receive up to 800 litres of subsidised RON95 each month.
However, limousines operating at airports and whose fares are not regulated by APAD, are not eligible to apply for a fleet card under SKPS.
The MADANI government remains committed to ensuring that this targeted subsidy program is implemented transparently, effectively and provides direct benefits to the people. MoF together with relevant agencies will continue to monitor the implementation of BUD195 and implement improvements from time to time.
APAD and LPKP will provide further information regarding the qualification criteria that e-hailing drivers must comply with to obtain the additional BUD195 qualification, while airport operating companies can begin submitting fleet card applications via the portal.
In tandem with these subsidy enhancements, the Government has announced on 5 November that retail fuel prices in Peninsular Malaysia will be revised to RM3.02 per litre from 6 to 12 November 2025.
Using the Automatic Pricing Mechanism (APM) formula, retail prices for petroleum products in the period are:
- RON97 petrol remains at RM3.20 per litre;
- Non-subsidised RON95 petrol remains at RM2.60 per litre;
- Subsidised RON95 petrol under BUDI95 remains at RM1.99 per litre;
- Diesel in Peninsular Malaysia rises by 7 sen to RM3.02 per litre; and
- Diesel in Sabah, Sarawak and Labuan remains at RM2.15 per litre.
These enhancements mark another step in the Government’s ongoing effort to make fuel subsidies more inclusive and responsive to changing needs.
Earlier initiatives have also opened the RON95 subsidy to Malaysian citizens holding Singapore driving licences, and reduced the RON95 petrol price to RM1.99 per litre — underscoring a steady push toward affordability and accessibility for all motorists.
share on
