No cash rebates for EVs under BUDI95: what every Malaysian driver needs to know
Are you planning to trade in your Perodua Myvi for a brand-new electric vehicle (EV) in hopes of scoring extra cash back from the government? If so, you might want to hit the brakes.
With the recent rollout of the BUDI95 (Targeted RON95 Subsidy), many Malaysian motorists have been asking: "If I switch to an EV and stop using petrol, will the government give me a cash rebate instead of the fuel quota?" The short answer is no. Finance Minister II Datuk Seri Amir Hamzah Azizan recently clarified that the Fuel Subsidy Cash Rebatesunder the BUDI95 framework are strictly for those who remain on internal combustion engines (ICE). This news has sparked a debate among car owners: is it still worth switching to an EV, or should you stick with your petrol-sipper to enjoy the RM1.99 per litre rate?
What is the BUDI95 Targeted RON95 Subsidy?
The BUDI95 program is the MADANI government's latest initiative to transition from a blanket fuel subsidy to a Targeted RON95 Subsidy. Launched officially on September 30, 2025, the program aims to ensure that the multi-billion ringgit fuel bill benefits only eligible Malaysians rather than high-income earners or foreigners.
How BUDI95 Works
Under this scheme, eligible Malaysian citizens can purchase RON95 petrol at a subsidised price of RM1.99 per litre(down from the previous ceiling of RM2.05). Any consumption beyond the set quota—or for those not eligible—will be charged at the prevailing market price.
Standard Quota: 300 litres per month for eligible individuals.
E-hailing Quota: Up to 800 litres per month (subject to travel distance verification via APAD/LPKP).
Verification: Done via MyKad at the petrol pump or through integrated apps like Setel and CaltexGO.
No EV Cash Rebates Under BUDI95: The Official Stance
During a recent Dewan Negara session, Finance Minister II Datuk Seri Amir Hamzah Azizan addressed the possibility of offering cash alternatives for EV owners. He stated clearly that there are no plans to replace the fuel subsidy with cash rebates for those switching to electric or hybrid vehicles.
Why the Government Said No
The Amir Hamzah BUDI95 announcement highlighted three main reasons for this decision:
Preserving Policy Objectives: The primary goal of BUDI95 is to manage the cost of living for those dependent on petrol-powered vehicles, not to act as an EV purchase incentive.
Avoiding Overlap: The government believes that EV incentives should be handled under separate frameworks, such as the National Automotive Policy (NAP).
System Stability: Introducing cash rebates for a different class of vehicles would complicate the administrative process and potentially lead to "leakages" where the funds aren't used for their intended purpose.
"The primary objective of BUDI95 is to shift from a blanket subsidy to a targeted one... to ensure fuel assistance continues to be channeled to those who truly need it for daily necessities." — Datuk Seri Amir Hamzah Azizan
BUDI95 Eligibility for EVs vs. Internal Combustion Engines
If you own a Tesla, BYD, or even a local Perodua Bezza, where do you stand? Here is a breakdown of how the subsidy affects different vehicle types in 2025.
1. Internal Combustion Engine (ICE) Vehicles
Most Proton, Perodua, and older Toyota/Honda owners fall into this category. If you are a Malaysian citizen with a valid driving license, you are likely eligible for the 300-litre monthly quota.
Savings: Estimated at RM180 to RM230 per month depending on global oil prices.
2. Hybrid Vehicles
Even though hybrids use petrol, they are currently lumped into the same category as EVs regarding the "no additional cash rebate" rule. Hybrid owners still benefit from the RM1.99 per litre price for the fuel they do use, but they don't get a "bonus" for being more eco-friendly.
3. Electric Vehicles (EVs)
There is zero BUDI95 eligibility for EVs. Since EVs do not use RON95, owners cannot claim the 300-litre quota, and they will not receive a cash equivalent (e.g., RM200/month) deposited into their bank accounts.
| Feature | ICE Vehicles (Petrol) | Electric Vehicles (EV) |
|---|---|---|
| Price per Litre | RM1.99 (Subsidised) | N/A |
| Monthly Quota | 300 Litres | 0 Litres |
| Cash Rebate | No | No |
| Road Tax | Standard Rates | Current Incentives Apply |
Fuel Subsidy vs. EV Incentives Malaysia: Which is Better?
While the lack of cash rebates under BUDI95 might seem like a disadvantage for EV owners, it’s important to look at the broader picture of Fuel subsidy vs EV incentives Malaysia.
Current EV Perks in 2025
While you don't get a BUDI95 rebate, EV owners in Malaysia still enjoy:
Import and Excise Duty Exemptions: Making high-tech cars more affordable.
Road Tax Waivers: Significant savings compared to high-displacement ICE cars.
Income Tax Relief: Up to RM2,500 for EV charging equipment/installation.
Growing Infrastructure: The government aims to have 10,000 charging points nationwide by the end of 2025.
The Financial Trade-off
For a heavy commuter driving 2,000km a month in a Proton Saga, the BUDI95 subsidy is a lifesaver. However, for a high-mileage driver, the cost of electricity per kilometer in an EV is still often lower than the cost of subsidised petrol, especially when factoring in the reduced maintenance costs of electric motors.
Expert FAQ: Common Questions About BUDI95 and EVs
1. Can I apply for BUDI95 if I own both a petrol car and an EV?
Yes. Eligibility is tied to the individual (Malaysian MyKad) and a valid driving license. If you own a registered petrol vehicle, you can use your MyKad to enjoy the RM1.99/litre rate for that vehicle.
2. Will there be a cash rebate for EV charging in the future?
Currently, the Ministry of Finance has stated there are no plans to integrate EV charging into the BUDI95 system. Any future incentives are expected to come from the Ministry of Investment, Trade, and Industry (MITI).
3. What happens if I use more than 300 litres of RON95?
Once you exceed your monthly quota, the price at the pump will automatically revert to the market price (unsubsidised).You can track your balance via the Setel app or the official Budi Madani portal.
4. Are e-hailing drivers with EVs eligible for cash?
No. Even for e-hailing drivers, the BUDI95 assistance is strictly a fuel quota (600–800 litres). EV e-hailing drivers do not receive a cash payout to offset their charging costs under this specific program.
Maximise Your Car’s Value with Motorist Malaysia
Whether you’re sticking with your petrol car to enjoy the BUDI95 Targeted RON95 Subsidy or you've decided to sell your current vehicle to upgrade to a more fuel-efficient hybrid, you need a partner who makes the process simple.
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Read More: Yes, you can sell your car even If It has an existing loan! here’s how to do It
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