The government has no plans to scale back the BUDI Madani RON95 (Budi95) fuel quota based on income levels, citing concerns that such a move would place added strain on household finances, according to Treasury Secretary-General Datuk Johan Mahmood Merican.
Instead, he said the authorities are taking a measured approach, focusing first on reviewing usage data collected since the programme was introduced to determine whether it is functioning as intended.
At this stage, the emphasis is on spotting any irregular consumption patterns rather than rushing into policy changes. Given the scale of the reform, the government wants to avoid frequent adjustments in the early phase of implementation.
He also revealed that government figures show average monthly fuel usage under BUDI95 is around 83 litres, with the vast majority of eligible recipients consuming well below the 300 litre monthly cap. About nine in ten users, he said, take up less than 200 litres a month.
He also dismissed suggestions that subsidies should be further refined based on income brackets, saying such proposals are not currently under consideration.
For now, the government’s priority is to close loopholes, including misuse by foreign vehicles or businesses, to ensure subsidised fuel reaches its intended Malaysian beneficiaries. Proposals to exclude higher-income earners, such as those earning more than RM20,000 a month, are not on the agenda, he added.
Source: MalayMail
