THE Ministry of Finance (MOF) has taken severe action a petrol station in Sungai Buaya, Nibong Tebal in Penang following the misuse of Budi Madani subsidy. The ministry discovered that over 1,000 transactions using manual bypass were recorded.
This involved 100,000 litres of petrol that was subsidised over RM270,000.
The petrol station which was not named has been barred from selling RON95 petrol and subsidised diesel under Budi Madani. The subsidy payment due for the petrol station has been stalled.
In addition to that nine individuals that includes the petrol station owner and their family members have been stopped from using the Budi Madani subsidy facility.
Budi Madani is a targeted and subsidised fuel program for Malaysians. It was introduced to curb fuel smuggling.
All Malaysians with MyKad and driving licenses are eligible to obtain RON95 petrol for their vehicles. For diesel vehicles, they need to have an additional private diesel vehicle registered under their name along with an active and legitimate road tax.
Betrayal to subsidy targeting
Each vehicle is limited to obtain a 300 litres monthly quota at RM1.99 per litre whereas for diesel it is RM2.10 per litre.
Owners of private diesel-powered pick-up trucks and jeeps who are qualified can apply for an additional 100 litres.
MOF reminded that the subsidy program is specially for the people and cannot be misused for private gains.
It added that any attempts to embezzle the subsidy is a betrayal to the goal of subsidy targeting as the ongoing conflict in Middle East has disrupted world’s energy supply and led to pressure on fuel prices. ‒ Oct 27, 2026
Main Image Credit: Ministry of Finance
