Kuala lumpur: The temporary adjustment to the Budi MADANI RON95 (BUDI95) programme should not be viewed negatively, as the public continues to enjoy stable subsidised fuel prices, despite facing global pressures. The measure, which only involves reducing the subsidy limit from 300 to 200 litres per month, without affecting the RON95 price, which remains at RM1.99 per litre, reflects the government's approach in balancing fiscal needs with the welfare of the people.

According to BERNAMA News Agency, Prof Datuk Dr Sivamurugan Pandian, a lecturer at the School of Social Sciences, Universiti Sains Malaysia (USM), believes the decision, set to take effect on April 1, demonstrates the government's pragmatic approach in ensuring that subsidies are better targeted without impacting the majority of users, given that the average petrol consumption among Malaysians is about 100 litres per month. However, the effectiveness of the initiative depends on clear communication and policy consistency in the medium term. He noted that the adjustment serves as a transition to ensure better-targeted subsidies, with public acceptance relying on transparent explanations that it is not a withdrawal of benefits.

In the short term, the measure helps maintain confidence, as it shows that the government is responsive. However, in the medium term, public confidence will depend on a clear subsidy direction and tangible evidence of its impact on the cost of living. Prof Pandian also highlighted the government's efforts to ease cost-of-living pressures in Sabah and Sarawak, particularly by maintaining diesel prices in both states, which is crucial given the high usage of diesel in transportation and logistics sectors there.

During a special address, Prime Minister Datuk Seri Anwar Ibrahim stated that the targeted subsidy adjustment followed a review of the average BUDI95 usage, revealing that nearly 90 percent of the population consumes less than 200 litres monthly, thus not affecting users. Anwar also announced continued subsidised diesel in Sabah and Sarawak at RM2.15 per litre.

Meanwhile, Distinguished Prof Datuk Dr Rajah Rasiah, executive director of the Asia-Europe Institute, Universiti Malaya (UM), emphasized that maintaining the RON95 price is vital for controlling inflation and reducing consumer pressure. He noted that while global oil prices rise, the government's subsidy burden increases, but maintaining prices prevents cost increases for the public. Fuel subsidies broadly impact the economy, as energy costs influence the prices of goods and services.

Prof Rasiah asserted that assistance should continue in a targeted manner to reduce income disparities and protect low-income groups without straining national finances. He also stressed the importance of developing alternative energy amid global oil supply uncertainties, including risks of disruptions along key routes such as the Strait of Hormuz. Increasing renewable energy use is crucial to reducing dependency on fossil fuels in the long term.