Pulau betong: The price of petrol in Malaysia is set to remain among the lowest globally with the implementation of the BUDI95 targeted subsidy program scheduled to begin on September 30, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.
According to BERNAMA News Agency, the minister assured the public that the subsidised price of RON95 petrol, set at RM1.99 per litre under the BUDI MADANI RON95 (BUDI95) program, will be maintained despite fluctuations in global crude oil prices. He emphasized that even with potential adjustments to market rates, Malaysia will continue to offer some of the lowest petrol prices both regionally and globally.
Amir Hamzah highlighted that the targeted subsidy initiative is projected to save the government between RM2.5 billion and RM4 billion annually. These savings, based on crude oil trading at approximately US$75 per barrel, will be redirected to the populace through direct assistance programs such as the Sumbangan Tunai Rahmah (STR) cash contribution and the Sumbangan Asas Rahmah (SARA) aid.
The program sets an eligibility ceiling of 300 litres per month, which Amir Hamzah stated is adequate for the average monthly vehicle usage, based on ministry research. He cited that the average distance covered by passenger cars for daily commuting is about 170 kilometres. Provisions will be made for specific workers, such as p-hailing drivers, to appeal for higher eligibility.
The verification of subsidy eligibility will utilise the MyKad system, deemed the most practical approach by leveraging existing infrastructure without the need for new platforms. Amir Hamzah noted the successful use of MyKad in distributing government assistance like the STR to nine million recipients.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced the reduction of the RON95 petrol price from RM2.05 to RM1.99 per litre, effective September 30, under the BUDI95 program. The subsidy is available to all citizens with a valid driving licence, potentially benefiting over 16 million Malaysians based on data from the Road Transport Department (JPJ) and the National Registration Department (JPN).