Implementation Of BUDI95 Makes Petrol Price In Malaysia Among The World's Lowest - Amir Hamzah

BALIK PULAU, Sept 22 (Bernama) -- The price of petrol in Malaysia will remain among the lowest in the world when the targeted subsidy programme begins on Sept 30, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He assured the public that the subsidised price of RON95 petrol at RM1.99 per litre under the BUDI MADANI RON95 (BUDI95) programme will continue to be enjoyed by consumers, regardless of fluctuations in global crude oil prices.

“The subsidised price of RM1.99 per litre is among the cheapest in the world. Even if we eventually adjust to the market rate, Malaysia will still be one of the countries with the lowest petrol prices in the region and globally.

“We will know the exact market price on Sept 30, as it depends on global oil prices. However, the RM1.99 subsidised price will remain unchanged and among the lowest worldwide,” he told reporters after attending the  Rumah Mesra Kampung Angkat MADANI programme at Pulau Betong here today.

Amir Hamzah said the targeted subsidy initiative is expected to help the government save between RM2.5 billion and RM4 billion annually, depending on global crude oil prices. The estimate is based on crude oil trading at around US$75 per barrel.

He said the savings would be channelled back to the people through direct assistance programmes such as the  Sumbangan Tunai Rahmah (STR) cash contribution and the Sumbangan Asas Rahmah (SARA) aid.

On the eligibility ceiling of 300 litres per month, Amir Hamzah said the amount is deemed sufficient for the monthly use of a vehicle, based on research conducted by the ministry.

“We found that 300 litres represents normal usage. For example, in the passenger car category, the average distance is about 170 kilometres a day for commuting.

“So if someone lives in Seremban and works in Kuala Lumpur, including Putrajaya, it fits within the 170 km estimate. However, for workers such as p-hailing drivers who rely heavily on their cars, we will allow them to appeal for higher eligibility,” he said.

Amir Hamzah also explained that the use of MyKad as a verification mechanism for subsidy eligibility is the most practical approach at present, as it leverages an existing system without the need to create a new platform.

“MyKad has long been used in the distribution of government assistance. For example, the STR has been channelled to nine million recipients via MyKad without issues. Therefore, we do not need to develop a new card or system,” he said.

He added that the government is also utilising existing processes to ensure system security in line with regulations, while emphasising the importance of fostering national pride.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that the price of RON95 petrol will be reduced from RM2.05 to RM1.99 per litre starting Sept 30, under the BUDI95 targeted subsidy programme.

Anwar, who is also Finance Minister, said all citizens with a valid driving licence are eligible for the subsidy. Based on Road Transport Department (JPJ) and National Registration Department (JPN) data, more than 16 million Malaysians are expected to benefit.

-- BERNAMA