The rationalisation of RON95 petrol subsidies is expected to save the government between RM2.5 billion and RM4 billion a year, says finance minister II Amir Hamzah Azizan.
He added however that the savings would depend on global oil prices.
“(This is) with the expectation that if the oil price is RM75 per barrel, then we will save between RM2.5 to RM3.5 or RM4 billion a year,” he told reporters during the Kampung Angkat Madani event in Pulau Betong, Balik Pulau, today.
Amir reiterated that the funds would be redirected to social support programmes such as Sumbangan Tunai Rahmah, Sumbangan Asas Rahmah, education aid and other cash assistance schemes.
“If we don’t do this, government spending that should go to Malaysians who really need it will be reduced,” he said.
The minister added that the government had chosen the MyKad system to prevent leakages.
“Every Malaysian over the age of 12 has an IC, so we can clearly distinguish who is a citizen and who is not. If you don’t have a blue IC, you don’t qualify,” he said.
He added that full details of the subsidy rationalisation mechanism would be announced in Putrajaya later this week.
Beginning Sept 30, the government will provide up to 300 litres of RON95 petrol per month at RM1.99 per litre for all Malaysians aged 16 and above with a valid driving licence.
Malaysians can present their MyKads for verification at the pump, counter, or through station apps. Foreigners, unlicensed drivers and foreign-registered vehicles will not be eligible, while commercial vehicles will continue under the existing fleet card system.
