During the same period, BUDI95 recorded sales of RM5.16 billion, or petrol usage of 2.59 billion litres, she said.

“The government is expected to generate savings of around RM2.5 billion to RM4 billion a year, subject to global oil prices and based on domestic consumption survey data prior to the implementation of BUDI95.

“This savings range takes into account various global crude oil price scenarios of between US$60 and US$80 per barrel, as well as the elimination of subsidies for non-targeted segments such as non-citizens and commercial users,” she said during the Dewan Negara’s question-and-answer session today.

She was responding to Senator Dr RA Lingeshwaran’s question on the government’s fiscal savings a month after the BUDI95 targeted subsidy programme was launched.

Lim said given that the targeted RON95 petrol subsidy programme only started on Sept 30, 2025, annual savings could only be assessed from 2026.

“The 2025 focus will continue to be on monitoring and improving implementation mechanisms to ensure that the BUDI95 system remains stable and user-friendly for the people while helping to address the leakage of subsidies,” she said.

She said the savings to be achieved via the various targeted subsidies, including BUDI95, had opened up a wider fiscal space for the government that would benefit the people.

“This fiscal space also strengthens the government’s ability to finance the development of educational, healthcare and public transportation facilities nationwide.

“In conclusion, the nation’s savings through targeted subsidies allow the government to allocate more funds for welfare agendas, assistance to address the cost of living, education, healthcare, and investments to provide a quality infrastructure for the people,” Lim said.