IPOH: The BUDI MADANI RON95 initiative will be implemented in stages to ensure a structured subsidy distribution process and prevent leakage.
Political secretary to the Finance Minister Muhammad Kamil Abdul Munim stated that the phased approach allows for monitoring and necessary improvements during implementation.
He confirmed that all Malaysians with a valid identity card and driving licence can purchase RON95 petrol at RM1.99 per litre during the first phase.
“After this first phase, we will monitor its implementation and make improvements where necessary.”
Muhammad Kamil noted that groups currently excluded from the subsidy, such as the T15 category, might be considered for inclusion in later phases.
“Our aim is to ensure that the transition process takes place smoothly, with minimal inconvenience, while also addressing any potential technical issues in implementation.”
He made these comments after officiating the launch of the Malaysian SDG Community Health Observatory Network at the Dewan NCMS-CARITAS.
Muhammad Kamil acknowledged public concerns regarding the 300-litre monthly cap for the RON95 petrol subsidy.
“I have no problem with differing views, and we have to accept them.”
He emphasised that the government made the decision after careful consideration and multiple engagement sessions based on average public consumption.
“The decision to set the threshold at 300 litres was made after careful consideration and multiple engagement sessions.”
The average monthly fuel consumption in Malaysia ranges between 200 and 220 litres according to government data.
The government set the limit at 300 litres to provide a buffer while avoiding potential issues from unlimited access.
Muhammad Kamil confirmed that authorities would periodically re-evaluate the 300-litre monthly limit to determine its adequacy for public needs.
He stressed that the cap serves as a necessary control mechanism to prevent subsidy abuse and profiteering.
“If we do not set a limit, there will be no control mechanism for RON95.”
Unlimited access could enable exploitation of the subsidy for profit, leaving leakage issues unresolved.
Prime Minister Datuk Seri Anwar Ibrahim announced on Monday that Malaysians can purchase RON95 petrol at RM1.99 per litre effective September 30.
The new price represents a reduction from the previous RM2.05 per litre rate for eligible citizens.
Non-citizens will pay RM2.60 per litre for RON95 petrol beginning the same date. – Bernama
