In survey, 38pc Malaysians go over 200-litre fuel subsidy quota; nearly half cope by just paying more

 

KUALA LUMPUR, July 23 — Did you manage to stay within the monthly quota of 200 litres of subsidised fuel, and what do you plan to do if you use more than that?

In the latest survey this month by research unit Rakuten Insight, 38.1 per cent or 381 of the 1,003 Malaysians surveyed said their household uses more than 200 litres of fuel every month.

In the same survey known as the Malaysia Cost Pressure Pulse (MCPP), nearly half of the respondents or 49.5 per cent said they use 200 litres or less every month.

As for the 381 persons who use more than 200 litres of fuel every month, nearly half of them said they expect to just pay more for the rest of their fuel spending over the next three months.

“Among those affected, the most common response is not to cut back but to absorb the cost: 45.9 per cent say they will pay more out-of-pocket to maintain their usual driving and fuel usage, while 28.9 per cent plan to reduce usage to stay within the subsidised quota, and 8.9 per cent say they will cut spending elsewhere in the household budget to cover the additional fuel cost,” Rakuten Insight said.

For this group of heavy users who know they are definitely using more than the 200-litre subsidy limit or cap, Rakuten Insight Malaysia’s commercial research lead Min Yao Kong told Malay Mail that it is harder for them to actually reduce driving, as it is “often tied to necessity, commute distance, work, family logistics”.

“So the path of least resistance for heavy users isn’t behaviour change, it’s just absorbing the extra cost,” he said. 

 

The Malaysian government had on April 1 reduced Malaysians’ monthly BUDI95 quota for subsidised RON95 petrol from 300 litres to 200 litres, amid rising fuel prices due to the US-Iran conflict and also as government data showed nearly 90 per cent used less than 200 litres per month.

From July 1, the 200-litre monthly quota covers both RON95 petrol and diesel, while those who have diesel-powered pickup trucks and sport utility vehicles (SUVs) can apply for an additional 100 litres for their monthly quota.

On July 15, Finance Minister Datuk Seri Anwar Ibrahim in a written parliamentary reply said BUDI95 data from October 2025 to May 2026 showed less than one per cent use more than 200 litres consistently, while the average use was around 100 litres of RON95 petrol per month.

Why did Malaysians cut down on driving, even when they don’t exceed subsidy quota?

Out of the 1,003 respondents (which includes those who use less than the 200-litre monthly subsidy quota), the majority said they had already made changes to their driving and fuel habits in the past month.

Some of the most popular choices were cutting down on driving (reduced non-essential driving trips at 49.8 per cent, switched to public transport or carpooling more often at 23 per cent), checked or applied for BUDI Diesel/ BUDI95 subsidy eligibility (39.1 per cent), and delayed buying or upgrading a vehicle (29 per cent).

Commenting on these changes, Kong said it showed that most Malaysians were choosing to make small, marginal or low-cost behavioural adjustments, instead of big, wholesale, or more permanent changes.

“Notice what’s low: only 14.1 per cent are considering an EV/ hybrid, so the big, structural decisions are rare. Most people are making small, reversible tweaks (skip the trip, check if I qualify) rather than big lifestyle or purchase changes. Only 12.7 per cent report no change at all, so adaptation is widespread, just mostly shallow adaptation,” he told Malay Mail.

In other words, he said most are opting for the “shallow” adaptation or low-effort changes that can be easily reversed (such as skipping a trip today but driving again tomorrow), while few are going for the structural and harder-to-reverse decisions (such as actually buying an electric vehicle (EV) or giving up a car altogether).

 

While the survey did not directly ask the 1,003 Malaysians why they changed their driving habits or fuel habits, Kong suggested four possible reasons on why even those who use less than the quota are changing their habits.

Firstly, Kong suggested that this probably is not really about the 200 litres number specifically, pointing out that fuel prices had been one of the topics that Malaysians were most aware and talked most about in every edition of this tracker (March, April and July).

“So general fuel cost anxiety is high regardless of whether someone’s near the cap or not,” he told Malay Mail, referring to the 200-litre quota limit as a “cap”.

“Second, some people genuinely aren’t sure how much fuel they use a month, 8.2 per cent told us they weren’t sure if the reform even affects them. So some of this is precautionary, cutting back just in case, rather than knowing for certain they’re at risk” of using more than the 200 litres quota.

“Third, checking subsidy eligibility especially, 39.1 per cent did this, feels more like natural curiosity about a new policy than a reaction to being over the cap. People want to understand a new system when it rolls out, whether or not it ends up affecting them.

“Fourth, this could just be the same general belt tightening we’re seeing across groceries, dining, subscriptions, showing up in fuel too,” he said, adding that this may not be a specific reaction to the quota but just fuel getting the same treatment as everything else in Malaysians’ spending right now.

In the same survey, 740 responded to the question of whether they would change their habits significantly if fuel prices continue rising, with 28 per cent saying yes even with a small rise, 25 per cent (yes if there is a noticeable rise), 24 per cent saying no as they have already changed their habits.

The same survey also found that the majority or 66 per cent of the 1,003 respondents would be ready to switch to a cheaper fuel brand, especially if there is a big price gap, even if their existing fuel brand has better rewards.

The MCPP survey carried out from July 13 to July 14 is its third edition, with the previous two editions or waves carried out in March and April.