COMMENT | Prime Minister Anwar Ibrahim’s decision to restore the monthly Budi95 quota from 200 to 300 litres and lift Budi Diesel from 300 to 400 litres on Merdeka Eve was presented as temporary relief from the rising cost of living.

While the pressure facing households is real, reverting the fuel subsidy quota while oil prices remain elevated is an unsustainable and weak policy response.

It also does little to address the underlying cost-of-living problem while risking the reversal of an important fiscal reform undertaken by this government.

First, the decision contradicts the government’s own rationale for reducing the monthly Budi95 quota from 300 to 200 litres in April 2026, when global oil prices surged above US$100 per barrel.

The decision was supported by the government’s consumption data, which showed average monthly usage of 100 litres, while 90 percent of eligible users consumed less than 200 litres of petrol a month.

Even with the lower quota...