The targeted diesel subsidy programme using MyKad verification is expected to reduce fuel leakages by up to one billion litres annually, says Amir Hamzah.
KOTA KINABALU: The targeted diesel subsidy programme under BUDI MADANI, which uses MyKad for verification, is expected to reduce fuel leakages by up to one billion litres annually, resulting in lower subsidy expenditure and a more stable domestic fuel supply.
Finance Minister II Datuk Seri Amir Hamzah Azizan said subsidy leakages had previously been prevalent in the diesel sector because MyKad-based verification was not as widely implemented as it is for RON95 petrol.
He said the use of MyKad ensures that only eligible Malaysian citizens receive subsidised fuel, while non-citizens must purchase diesel at the prevailing market price.
“We estimate that leakages can be reduced by one billion litres of diesel a year. This will not only curb improper subsidy payments but also help ensure a stable fuel supply within the country,” he said at a media briefing on the implementation of the targeted diesel subsidy reform here today.
Also present was Sabah Deputy Chief Minister II and state Finance Minister Datuk Seri Masidi Manjun.
Amir Hamzah said the diesel subsidy mechanism would mirror the targeted RON95 subsidy model to be implemented nationwide, including in Sabah and Sarawak.
On the registration process, he said eligible recipients of the basic subsidy would not be required to register, as eligibility would be determined automatically through existing government databases.
However, individuals seeking an additional quota of 100 litres per month under the BUDI Diesel programme must apply through the designated online portal or seek assistance at Inland Revenue Board (LHDN) offices.
Amir Hamzah also expressed confidence that the use of MyKad would not pose difficulties, particularly in rural and remote areas, as a similar mechanism has already been successfully implemented through the Sumbangan Asas Rahmah (SARA) programme.
In Sabah alone, he said, about 1,493 premises are involved in the SARA programme, including outlets in remote areas, with beneficiary utilisation rates approaching 100 per cent.
The experience gained through SARA has shown that MyKad can be effectively used as a verification and redemption tool, and has been well received by the public, including in Sabah and Sarawak, he said.
He added that the government would continue engaging stakeholders and gathering feedback to ensure the targeted diesel subsidy programme is implemented smoothly and achieves its objectives without affecting those entitled to assistance.
