The BUDI95 targeted fuel subsidy has saved RM800 million by curbing leakages to foreigners and smuggling, says PM Anwar Ibrahim
KUALA LUMPUR: The government has saved RM800 million through the implementation of the BUDI MADANI RON95 (BUDI95) programme since its launch on September 30.
Prime Minister Datuk Seri Anwar Ibrahim said the savings resulted from better targeting of fuel subsidies to benefit only Malaysians.
He stated this effectively curbed leakages that previously benefited more than 3.5 million foreigners and involved fuel smuggling of tens of thousands of litres.
“Every ringgit saved is channelled back to the people through initiatives such as the Rahmah Cash Contribution (STR) and the Rahmah Basic Contribution (SARA),” he said in a Facebook post.
Anwar added that the savings also fund upgrades to clinics and hospitals, road improvements and infrastructure strengthening.
He noted that targeted fuel subsidies had been debated for over 20 years by successive governments.
“None had the courage or political will to implement them until the MADANI Government took the bold step of introducing BUDI95,” he said.
Under the programme, all Malaysian MyKad holders aged 16 and above with a valid driving licence are eligible to purchase subsidised RON95 fuel.
They can buy up to 300 litres per month at RM1.99 per litre, compared with the unsubsidised price of RM2.60.
