BUDI95 Quota May Be Cut to 150 Litres. Here’s the Smarter Way Malaysian Families Can Offset the Cost
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On 12 May 2026, Deputy Finance Minister Liew Chin Tong floated reducing the BUDI95 subsidised RON95 quota from 200 to 150 litres a month, noting that 60% of Malaysians already use less than 150. His office later clarified that the figure was “not yet a policy decision”. But the direction of travel is clear.
The more useful question isn’t “When will it kick in?”, it is this: if your monthly fuel bill is going to climb by RM40-RM60, where in your budget should that money come from? The smartest answer isn’t fewer Grab rides or trading down the second car, it’s the credit card bill sitting on your kitchen table.
What does the BUDI95 cut actually cost a typical Malaysian household?
Take a PJ family with a Myvi and a Vios, combined consumption 220 litres a month. Today they pay 220 × RM1.99 = RM437.80. If the quota tightens to 150 litres, the surplus 70 litres shifts to unsubsidised RON95 at RM2.60, total fuel bill rises to RM480.50. The gap: RM42.70 a month, about RM512 a year.
That is the real number, not catastrophic, but enough to nudge an already-tight household. The question becomes: where in your monthly budget is there a clean RM42.70 you can recover without sacrificing anything that matters?
iMoney’s private-sector consolidation panel
These are the three private-sector Personal Loan rates currently offered by iMoney’s panel banks in May 2026, suitable for debt consolidation.
| Bank | Rate (p.a.) | Max tenure |
|---|---|---|
| RHB | 5.07% | 7 years - lowest panel rate |
| Al Rajhi | 5.27% | 8 years - Islamic, longest tenure |
| Alliance Bank | 6.99% | 7 years - conventional alternative |
How does rolling credit card debt into a personal loan offset the fuel cost increase?
Most M40 and T20 households in Malaysia carry RM10,000-RM18,000 in credit card balances. At 18% APR, they pay the minimum month after month, and the debt barely moves. This is exactly where to find that RM42.70.
Roll a RM12,000 credit card balance at 18% into a 3-year Personal Loan with RHB at 5.07%. Monthly payment drops from RM434 (matching tenure on the card) to ~RM360/month, freeing up RM74 in monthly cash flow, and saving RM2,664 in interest over the same three years compared with sticking with the card.
| RM12,000 over 3 years | Credit card (18%) | RHB PL (5.07%) |
|---|---|---|
| Monthly payment | RM434 | RM360 |
| Total paid | RM15,624 | RM12,960 |
| Total interest | RM3,624 | RM960 |
| Savings | RM2,664 in interest + RM74/month freed | |
The RM74 freed each month comfortably absorbs the RM42.70 fuel increase, and still leaves RM31 for emergency savings or the kids’ tuition class.
What should you check before switching from a credit card to a personal loan?
1. Direct payment to your card issuer
RHB and Alliance Bank on iMoney’s panel typically pay your card issuer directly. Some packages simply disburse cash into your account, that is a discipline trap. Confirm “balance transfer to creditor” before you sign.
2. Close the card or keep it at zero balance
Closing the card after clearing the balance helps DSR but kills credit history. The disciplined choice: keep the card at zero, use it only for spending you can settle in full each month. That’s the real test.
3. Choose between RHB, Al Rajhi and Alliance Bank
RHB at 5.07% is the lowest panel rate. Al Rajhi at 5.27% offers an 8-year tenure (lower monthly, higher total interest). Alliance Bank at 6.99% is the conventional alternative. On RM12,000 over 3 years, the gap between RHB and Alliance is roughly RM375, worth comparing before you sign.
BUDI95 may or may not get cut to 150 litres. But the 18% on your credit card, that is running every day, guaranteed. That’s the debt to handle first.
See iMoney’s panel debt consolidation Personal Loan rates, RHB 5.07%, Al Rajhi 5.27% and Alliance Bank 6.99%, or book a free 1-on-1 pre-screening with iMoney’s anniversary panel.
FAQs
No,as of 14 May 2026, it is not yet official policy. Deputy Finance Minister Liew Chin Tong floated reducing the subsidised RON95 quota from 200 to 150 litres, but his office subsequently clarified the figure was not yet a policy decision. The direction is clear, but no implementation date has been announced.
It depends on how much your household drives. For example, a two-car family consuming around 220 litres a month would see roughly 70 litres shift to unsubsidised RON95 at RM2.60 per litre, adding approximately RM43 a month, or around RM512 a year, to their fuel bill.
- Confirm the loan pays your card issuer directly rather than disbursing cash into your account, the latter is a discipline trap.
- Decide what to do with the card after clearing it; keeping it at zero is smarter than closing it outright, as closing hurts your credit history.
- Check your current DSR, as new credit commitments since your original borrowing may affect the rate the bank actually offers you.
