The Ministry of Finance (MoF) has disclosed official statistics for the BUDI RON95 petrol subsidy after its first full month of implementation, showing that only 0.6% of private users exceed the monthly quota of 300 litres despite earlier concerns of its sufficiency.
According to the ministry, Malaysians consumed an average of 98.2 litres of RON95 petrol in the first month, or equivalent to roughly RM195 in fuel costs per person after subsidies, saving approximately RM60 compared to fuelling up with unsubsidised RON95 at RM2.60 per litre.
Overall, 1.33 billion litres of subsidised RON95 fuel were purchased in the programme’s first month of implementation, translating to over RM800 million saved for Malaysians.
As part of the BUDI RON95 subsidy rationalisation programme, some 16.55 million Malaysians were eligible for subsidised RON95 petrol, priced at RM1.99 per litre, at a quota of 300 litres per month. The ministry said that 13.1 million people have benefitted from the programe so far, including over 23,000 fishermen and registered boat users without driving licences, of whom only 0.3% exceeded their monthly quota.
Full-time e-hailing drivers can also apply to have their monthly quota increased to 600 litres per month. The ministry said that roughly 58,000 e-hailing drivers nationwide have already benefited from the increased quota, which was introduced on October 13. Looking forward, the Madani Government says it will continue reviewing additional qualification limits for e-hailing drivers for further improvements.
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Although the programme has run smoothly for the most part, the ministry said that it has also noted instances of irregular subsidy usage, including those depleting the 300L subsidised RON95 quota in a short period of time, or those who have repeatedly purchased fuel within border states.
Previously, Treasury Secretary-General Johan Mahmood Merican revealed that some 80 recipients, mainly within the border-state regions, were found to have depleted their monthly quota within the first two weeks of the subsidy rationalisation. “This indicates that they are using their motorcycles for more than 500 km every day”, he said in an interview with Bernama.
The ministry stated that it will continue strengthening monitoring at petrol stations to prevent misuse of the BUDI RON95 petrol subsidy. Those found guilty of abusing the subsidy will face action under the Control of Supplies Act 1961.
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