Malaysia Oversight

Govt to impose strict safeguards on targeted RON95 subsidy

By theStar in September 23, 2025 – Reading time 2 minute
Govt to impose strict safeguards on targeted RON95 subsidy



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GEORGE TOWN: The government will introduce strict safeguards to prevent misuse of the new targeted RON95 petrol subsidy, including blocking individuals from making repeated refuelling attempts in a single day.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the move, under the BUDI95 programme, is designed to ensure only genuine recipients use the subsidy.

“The mechanism will not allow multiple fills in one day. Full details of these controls will be announced later,” he said after launching the Mega e-Invoice Roadshow 2025 here on Tuesday (Sept 23).

He said that both the Finance Ministry and the Domestic Trade and Cost of Living Ministry are working with oil companies to deploy monitoring tools that can track purchases and flag suspicious patterns.

“This is important to prevent abuse and to safeguard government resources,” he added.

The targeted subsidy begins on Sept 30 and will cover all Malaysians aged 16 and above who hold valid driving licences.

Each person will be entitled to 300 litres a month, while e-hailing and p-hailing drivers may apply for higher quotas, subject to verification by their companies.

Amir Hamzah explained that the system would also cross-check with e-hailing platforms to ensure genuine usage.

“This allows us to confirm that higher allocations go to drivers who actually need them,” he said.

He said that foreigners would not be eligible for the scheme and enforcement officers would be deployed to ensure compliance from the outset.

“We will be watching closely to make sure there is no leakage,” he said.

On preparations, he said oil companies had upgraded their pumps and counters since late last year to meet the September 30 deadline.

“All companies have confirmed readiness, and their systems are now active,” he said.

Amir Hamzah urged motorists to be patient should minor teething problems arise.

“This is a nationwide rollout involving thousands of stations, so there may be glitches in the early days. But the safeguards are in place to ensure fairness,” he said.

 

 



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