The government has saved a total of RM800 million since the implementation of the Budi Madani RON95 (BUDI95) fuel subsidy programme on 30 September, Prime Minister Datuk Seri Anwar Ibrahim said.
As reported by Bernama, the Prime Minister and Minister of Finance stated that the savings were made possible by ensuring the subsidy is only enjoyed by Malaysians, effectively preventing subsidy leakages that have previously benefited more than 3.5 million foreigners, as well as fuel smuggling involving tens of thousands of litres.
In a Facebook post, he added that the money saved is channelled back to the people via initiatives such as the Rahmah Cash Contribution (STR) and the Rahmah Basic Contribution (SARA). Some of these contributions include upgrading clinics and hospitals, improving roads, and strengthening infrastructure.
Under the BUDI95 fuel subsidy programme, Malaysian MyKad holders aged 16 and above with a valid driving licence can purchase subsidised RON95 fuel of up to 300 litres per month at RM1.99 per litre.
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As previously reported, Malaysians consumed an average of 98.2 litres of RON95 petrol in the first month of the programme’s implementation, equivalent to roughly RM195 in fuel costs per person after subsidies. This represents a saving of approximately RM60 compared to refuelling with unsubsidised RON95 priced at RM2.60 per litre.
During the first month of the fuel subsidy programme, 1.33 billion litres of subsidised RON95 fuel were purchased, translating to more than RM800 million in savings for Malaysians. However, previous reports also highlighted irregular subsidy usage, including cases where individuals depleted the 300-litre subsidised RON95 limit within a short period, as well as repeated purchases of subsidised fuel in border states.
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