The ministry said the application function on the BUDI95 portal, introduced during the initial phase of its implementation, was only intended for specific cases involving “clearly defined and verified operational needs”, such as e-hailing drivers and boat operators, subject to eligibility criteria.

“The additional application function in the BUDI95 portal has been misinterpreted as a channel for unrestricted requests to increase subsidy limits,” said the ministry in a statement.

It said the application button on the BUDI95 portal had been deactivated following this misunderstanding.

The ministry reiterated that the current 200-litre monthly eligibility limit remained unchanged, saying it was intended to ensure subsidies were targeted at the majority of users while maintaining supply stability.

It added that the temporary measure was introduced amid continued global energy market pressures, which had increased subsidy costs and required more prudent management.

The ministry also said the 200-litre monthly quota was sufficient for around 90% of BUDI95 users.

At the subsidised price of RM1.99 per litre, recipients are able to purchase up to RM398 worth of RON95 fuel monthly, with the government absorbing about RM500 in subsidy per beneficiary.

The ministry said it would continue to safeguard the welfare of the public, strengthen enforcement to prevent leakages, closely monitor global energy trends, and make adjustments where necessary.

The Middle East war, which is in its sixth week now, has resulted in rising fuel costs following disruptions to global supply chains.

Malaysia’s fuel subsidy bill is estimated at around RM4 billion a month. Putrajaya is maintaining the subsidised RON95 petrol price at RM1.99 per litre under the BUDI95 scheme, alongside targeted diesel subsidies.

However, it temporarily reduced the subsidised RON95 quota from 300 litres to 200 litres per month, effective April 1.