PM: Diesel subsidy reform to follow BUDI95 model to tighten energy policy framework

PRME MINSTER Datuk Seri Anwar Ibrahim has instructed the Ministry of Finance to urgently review and restructure the country’s diesel subsidy targeting system, with plans to model it on the existing Budi 95 mechanism used for RON95 petrol subsidies.

Unity Government spokesperson Datuk Fahmi Fadzil said the Prime Minister Datuk as directed that detailed proposals be presented within the coming week, either at a National Economic Action Council meeting or at a Cabinet session shortly thereafter.

He said the government is currently assessing how best to transition the existing Budi Diesel Individual subsidy, which is presently delivered through cash transfers, into a more structured framework similar to Budi 95.

“We are expecting that when the time comes, this will be able to assist especially Malaysians who use diesel vehicles. So, the method will be simpler, more efficient and more effective if we look at how the Budi95 implementation works,” Fahmi said during the weekly post-Cabinet briefing in Putrajaya today.

In parallel policy developments, the Cabinet also reviewed Malaysia’s biodiesel blending programme and agreed to raise the mandatory blend from B10 to B15, beginning with an interim B12 level.

The government said the adjustment will not impose additional fiscal costs and will utilise existing blending infrastructure.

“This will be implemented without additional cost to the government and will use existing biodiesel blending infrastructure,” he said.

Fahmi also disclosed that 441 pieces of false or misleading online content related to the global energy crisis were detected between 29 March and 15 April by the Malaysian Communications and Multimedia Commission (MCMC).

He said 54 investigation papers have been opened, with 12 already submitted to the Attorney General’s Chambers for review, while 42 remain under active investigation.

“For the information of all, from 29 March to 15 April, as of 7am today, the Malaysian Communications and Multimedia Commission has identified 441 pieces of fake content related to the global energy crisis for removal,” he said, adding that takedown requests had been forwarded to social media platforms following public complaints.

Fahmi, who is also Communications Minister, said the administration will standardise the announcement of fuel prices, which will now be issued every Wednesday between 6pm and 7pm.

He said the measure is intended to reduce speculation and prevent the spread of inaccurate information on fuel pricing.

“For information, the new prices for fuel products in Malaysia are only announced every Wednesday between 6pm and 7pm. Any information or dissemination detected before that time and not issued through official platforms of the Ministry of Finance is likely to be false,” he said.

In a separate update on maritime security, Fahmi said the Cabinet was briefed on the status of Malaysian-flagged vessels affected by heightened tensions in the Strait of Hormuz.

He said two vessels are currently en route back to Malaysia, while five others remain in the strategic waterway as authorities continue monitoring the situation.

“At this time, we are informed that there are two ships on their way. One vessel is expected to arrive on 17 April, while another may arrive the following week. There are five vessels still in the Strait of Hormuz,” he said during a special briefing on the global energy crisis following the Cabinet meeting.

He added that the government will continue to closely monitor the vessels and prioritise the safety of crew and cargo, with further updates to be issued as the situation develops.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim said one of seven vessels previously delayed in the Strait of Hormuz had successfully cleared the passage and was en route to Malaysia, while the remaining ships had received clearance and were awaiting transit through the busy shipping route, following a briefing from Petronas leadership. - April 15, 2026