Finance Minister II Datuk Seri Amir Hamzah Azizan said the government has no plans to introduce tiered pricing for RON95 at RM2.10 or RM2.30 under the BUDI95 programme once the 300-litre quota is fully utilised. He explained that such a move could increase the risk of leakages and would not meaningfully improve the government’s fiscal position.
The Minister said this in response to Senator Datuk Abdul Halim Suleiman’s question on the rationale for implementing BUDI95 at RM1.99 for the first 300 litres, with a floating price of RM2.60 for consumption beyond that limit. The senator had also asked why the government opted against introducing the tiered pricing levels.
“The government will continue to closely monitor usage patterns and trends, and re-evaluate the (BUDI95) limit from time to time,” he added at the Dewan Negara’s oral question-and-answer session last week. “This is to ensure that the targeted RON95 subsidy policy is continuously refined and strengthened for the benefit of the people and the nation’s fiscal sustainability.”
Since the implementation of the BUDI95 subsidy, eligible Malaysians have been allocated a monthly quota of 300 litres of fuel at a subsidised price of RM1.99 per litre. However, Hamzah noted that the average Malaysian consumes only about 98 litres per month, representing just 33% of the allocated quota.
He added that adjusting limits at the individual level would be challenging, as around 14 million people are enrolled under the BUDI95 programme. “If I have to set limits like this person 301 litres, that person 350 litres — the Finance Ministry’s work will never end,” he said.
Nevertheless, he ensured that the government will always keep an eye out for improvements. It will reconsider proposal submitted with sufficient data of a year after the BUDI95 has been implemented.
(Source: Bernama)
