MADANI Govt Allocates RM11 Bln For BUDI95 Fuel Subsidy - MoF

PUTRAJAYA, Sept 23 (Bernama) — The MADANI government will allocate approximately RM11 billion to cover the difference between the subsidised price of RM1.99 per litre and the unsubsidised pump price of around RM2.60 per litre under the BUDI MADANI RON95 (BUDI95) fuel subsidy initiative.

In a statement today, the Ministry of Finance (MOF) said that with the removal of blanket subsidies, the MADANI government projects that BUDI95 will generate annual savings of between RM2.5 billion and RM4 billion.

“These savings will be used to expand targeted assistance that directly benefits the people, including the Rahmah Cash Contribution (STR) and the Rahmah Basic Contribution (SARA),” said the MOF.

BUDI95, a targeted RON95 fuel subsidy system specifically for Malaysian citizens, has been carefully designed and refined to ensure the process does not burden the people, but instead benefits recipients.

The MOF said all Malaysian citizens aged 16 and above with a valid driving licence are automatically eligible to purchase up to 300 litres of RON95 per month.

“This monthly eligibility cap was set based on findings from the Department of Statistics Malaysia (DOSM), which showed that 99 per cent of private vehicle drivers in Malaysia consume less than 300 litres per month.

“This 300-litre quota is sufficient for a worker commuting in a Proton Saga over a distance of 200 kilometres daily between Seremban and Puncak Alam for a month,” said the MOF.

The ministry added that this relatively high monthly eligibility cap also acts as a safeguard against exploitation by irresponsible parties, such as cross-border smugglers or large-scale commercial operators.

To facilitate checks on eligibility profiles and remaining monthly balances, the MOF said the government has set up www.budimadani.gov.my. The portal will go live for public use at 9 a.m. on Thursday (Sept 25).

“E-hailing drivers may also apply for additional quota beyond their monthly cap via this portal,” the statement added.

The public may also contact the helpline at 1300-88-9595 to find out more about BUDI MADANI, also from 9 a.m. on Thursday.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced that the price of RON95 petrol would be reduced to RM1.99 per litre from RM2.05 per litre, effective Sept 30, through targeted subsidies under the BUDI95 programme.

Anwar, who is also the Minister of Finance, said that all citizens with a valid driving licence are eligible for the RON95 subsidy, and based on data from the Road Transport Department (JPJ) and the National Registration Department (JPN), it is estimated that more than 16 million people qualify for the subsidy.

Meanwhile, in a separate statement, MOF said the government has no plans to limit purchases of RON95, as reported by some media outlets.

“Although the government is studying measures to prevent the misuse of RON95 subsidies, BUDI95 has been implemented to ensure the daily needs of Malaysians can be met.

“A one-purchase-per-day limit is clearly not in line with that objective,” the statement said.

-- BERNAMA