Treasury Secretary-General says the government will not reduce the BUDI95 RON95 subsidy quota based on income classification to avoid burdening households.
KUALA LUMPUR: The government will not reduce the BUDI MADANI RON95 (BUDI95) quota based on income classification.
Treasury Secretary-General Datuk Johan Mahmood Merican said this is to avoid placing additional constraints on household expenditure.
He said the government’s current priority is to analyse the data gathered since the programme’s launch.
“We do not want to tweak with it too much in the short term,” he said during a fireside chat session at a corporate event.
Johan said government data shows average consumption is about 83 litres per month under the scheme.
He added that 90% of eligible people use less than 200 litres of the 300-litre monthly quota.
The Secretary-General emphasised that a more targeted subsidy based on income class is not being implemented.
Proposals for a more precise mechanism, such as excluding high earners, are not currently on the table.
“Let’s first focus on removing the leakages,” he said, referring to foreign or corporate consumption of subsidised fuel.
The focus remains on allowing more Malaysians to benefit from BUDI95 rather than engaging in lengthy debates on tiering.
