Prime Minister’s Political Secretary Mohamad Kamil stated that with the first phase of the Madani BUDI95 RON95 petrol subsidy plan soon to be implemented, the government will next assess its effectiveness and make adjustments accordingly, including the possible exclusion of the “T15” high-income group.
He said, following the first phase, we will observe how the implementation goes, after which we will make improvements. For example, the T15 group may no longer be included among the beneficiaries of the RON95 subsidy.
“We want to ensure the transition process is as smooth as possible and reduce technical issues during the implementation and mechanism. The ultimate goal is to ensure that this policy is carried out successfully and meets the government’s expectations.”
Mohamad Kamil disclosed this to the media on Wednesday after attending the launch ceremony of the National Cancer Society Malaysia (NCSM) ‘Community Health Observation Center’ (MASCHON) Sustainable Development Goals (SDG) project in Ipoh. Attendees included NCSM Managing Director Muttalib Dalan.
He said, the phased implementation of BUDI95 aims to ensure the distribution of subsidies is more organized and to prevent loopholes; in the first phase, all Malaysian citizens with a valid identity card and driving license are eligible to purchase RON95 petrol at the price of RM1.99 per liter.
He also said that he understands some have questioned the plan’s 300-liter subsidy cap, but this was decided after multiple discussions with stakeholders, balancing the average consumption of the public.
“I have no issues with such opinions; after all, today’s government is one that is willing to listen. However, the 300-liter cap was decided upon only after several rounds of deliberation.
He noted that the average monthly consumption domestically is about 200 to 220 liters, so this amount was rounded up to 300 liters to avoid disputes.
Nevertheless, he said the government will also re-evaluate whether the 300-liter cap is sufficient to meet national needs.
“If there is no cap, how can there be any control mechanism for RON95? This could allow individuals to exploit loopholes, for example, by reselling petrol. If so, the issue of subsidy leakages cannot be resolved.”