Malaysia's subsidised petrol scheme targeted with false and misleading claims amid fuel crisis
- Published on April 17, 2026 at 10:38
- 3 min read
- By Najmi MAMAT, AFP Malaysia
Malaysia has taken steps to ensure continuity of the country's fuel supply as war in the Middle East has caused a global energy crisis, but social media posts continue to spread false claims about the government's petrol subsidy plan. The finance ministry rejected claims that citizens could apply to increase their quota for subsidised fuel, while the transport ministry has not announced Singaporeans could apply to be covered under Malaysia's petrol subsidies.
"Turns out many people don't know how to apply for 300 litres Budi95 petrol subsidy.... The way to do it is to go to the Budi95 website and apply," reads parts of a Malay-language Facebook post shared on April 7, 2026.
The post features a screenshot of a Google search result for the official Budi95 subsidy website (archived link).
Malaysia heavily subsidises fuel, with eligible citizens paying just 1.99 ringgit (US$0.49) per litre of unleaded petrol under the Budi95 scheme (archived links here and here).
However, with global crude prices soaring and the Strait of Hormuz remaining closed following the war in the Middle East that was started by joint US-Israeli strikes on Iran in February, Malaysian Prime Minister Anwar Ibrahim announced the quota for subsidised fuel would be reduced from 300 litres (79 gallons) to 200 litres per month from April 1 (archived here and here).
Similar claims about applying for an additional subsidy quota also surfaced elsewhere on Facebook, Instagram, and Threads.
Meanwhile, other posts claimed the subsidised petrol quota had been reduced to let Singaporean citizens buy the cheaper fuel from Malaysia. The post, shared on Facebook on April 5, features a news graphic with an image of Transport Minister Anthony Loke and Malay-language text reading: "Singapore driving licence holders eligible to apply for BUDI95 from tomorrow - Loke."
The same news graphic was shared alongside similar claims elsewhere on Facebook.
The closure of the Strait of Hormuz, a key shipping route for oil and fertilizers, has caused energy prices to surge, squeezing countries -- especially vulnerable economies and those dependent on oil imports from the region.
After the collapse of peace talks between the United States and Iran on April 12, US officials said they were optimistic about reaching a deal in a possible second round of discussions with Tehran in Pakistan (archived link).
Aside from reducing the subsidised fuel quota, Malaysia has also announced work-from-home arrangements for public servants to conserve energy during the Middle East war -- but the ongoing crisis has also sparked a wave of misinformation surrounding the petrol subsidy scheme (archived link).
The latest claims circulating online are also misleading.
No quota increase
A Google keyword search found Malaysia's Ministry of Finance called the claim about applying to increase the petrol subsidy quota "entirely false and baseless" in a Facebook post on April 7 (archived link).
The government's statement also said it had removed a previously available space to apply for additional quota, clarifying that the application was only for "specific cases with clear and confirmed operational needs", which includes e-hailing drivers and boat owners.
AFP checks of the subsidy website confirms the application option is no longer directly available to users after logging in to the system.
No application for Singaporeans
Further keyword searches found that the transport minister's announcement had been misinterpreted in the circulating posts.
Reports by both Malaysian and Singaporean news outlets from October 15, 2025 stated that Loke had announced Malaysian citizens holding Singaporean driving licences would be able to apply for Malaysian drivers licences so they became eligible for fuel subsidies (archived links here and here).
There have been no official announcements about allowing Singaporean citizens to apply for subsidised Malaysian fuel.
A spokesperson for the Ministry of Transport told AFP on April 16 that the circulating graphic is misleading and it had reported the posts to the Malaysian Communications and Multimedia Commission.
Since 2010, Malaysia has prohibited the sale of subsidised RON95 petrol to vehicles registered outside the country, a measure designed to ensure that government subsidies benefit citizens (archived link).
AFP has debunked other false claims linked to the energy crisis here.
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