RON95 fuel subsidy mechanism to use MyKad, two-tier pricing system; over 85% will benefit – Amir Hamzah

RON95 fuel subsidy mechanism to use MyKad, two-tier pricing system; over 85% will benefit – Amir Hamzah

How are they going to implement it, everyone asked. The answer is MyKad. Finance minister II Datuk Seri Amir Hamzah Azizan said that the RON 95 fuel subsidy mechanism will be based on a two-tier pricing system, and your identity card will determine if you pay a subsidised petrol price later this year.

“As I have answered multiple times in the Dewan Rakyat and Dewan Negara, the mechanism is still being refined. We do not want to pre-announce something while we are still working on it because the most important thing is to ensure that the system is robust,” he said today at the launch of the Rapid KL On-Demand open payment system in KL, reported by NST.

“We will use a two-tier pricing system, with both subsidised and non-subsidised prices. More than 85% of the people will benefit from the subsidised price,” the senator added.

RON95 fuel subsidy mechanism to use MyKad, two-tier pricing system; over 85% will benefit – Amir Hamzah

Amir said the system will be utilising MyKad. “For those who are not familiar with the process, the Sumbangan Asas Rahmah (Sara) assistance programme, we have the recipients receiving RM100 or RM50 per month, where they can purchase goods at retail stores or supermarkets using MyKad. Currently, we have 700,000 recipients and starting next week, this number will increase to 5.4 million people who will benefit from it.

“There are currently over 3,500 retail stores and supermarkets that support this MyKad system for Sara’s assistance. So, when we compare, if we can use MyKad for 5.4 million recipients with 3,500 stores, it’s not that different and we could also use the same system for RON 95,” Amir explained.

Prime minister Datuk Seri Anwar Ibrahim announced the restructuring of RON 95 petrol subsidy from blanket to targeted in the tabling of Budget 2025, and said that change will take place in mid-2025. The PM said that Malaysia spends RM20 billion a year in petrol subsidies to keep the price of RON 95 capped at RM2.05 per litre, and moving to targeted subsidies would save the government RM8 billion.

RON95 fuel subsidy mechanism to use MyKad, two-tier pricing system; over 85% will benefit – Amir Hamzah

The targeted petrol subsidy was to exclude the top 15% earners in the country, or T15, though the prime minister has since walked back on the definition of T15, which according to some definitions is household income of RM12,000 or RM13,000.

Now, Amir Hamzah says that 85% of the rakyat will benefit, which goes back to the T15 yardstick. MyKad-based two-tier pricing aside, the other methods to channel subsidy that have been floated before include direct cash transfer and vehicle type discrimination – we take a look at the pros and cons of all three methods here. What do you think of the government’s chosen approach?

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • AI-generated Summary ✨

    Comments reveal mixed reactions to the new MyKad-based fuel subsidy mechanism, with concerns about potential fraud, data security, and fairness. Critics argue it may benefit the wealthy and privileged, like T15, while the poor may still face challenges. Some express frustration over delayed implementation and question the practicality and transparency of the system, fearing it could lead to smuggling and siphoning. Others support targeted subsidies as a way to save billions and reduce corruption, emphasizing the need for effective technology and proper management. A few comments highlight broader issues like government inefficiency, inflation, and the impact on price disparities. Overall, there’s skepticism about whether the initiative will be effective, balanced with cautious optimism that a proper system could benefit the targeted groups.

  • kogila on Mar 27, 2025 at 4:19 pm

    the government is attacking the Rakyat, instead of stopping RON95 stolen at Thai and Singapore border. This is stupid. All Rakyat pays taxes, the rich pays more, the poor pays less/none. So it is only fair all Rakyat gets to use subsidized RON95 regardless of income, etc.

    Like or Dislike: Thumb up 28 Thumb down 6
    • Agree. It is as if the high taxpayer is at a disadvantage. You only pay tax but do not get benefits like others do. Firthermore, the benchmark of T15 should be based on the amount after income tax amount.

      Like or Dislike: Thumb up 7 Thumb down 1
      • Meleisian politics 101 on Mar 30, 2025 at 1:45 pm

        Rule No. 2
        Reward and encourage laziness. This will guarantee votes

        Like or Dislike: Thumb up 8 Thumb down 1
    • yg X agree Tu mungkin geng malas berusaha majukan diri dan X bayar cukai . kami yg gaji 12k bayar cukai setahun 20k lebih. kami dulu org miskin berlapar jalan kaki naik basikal dari sekolah sampai U, kahwin pun lambat nak bantu keluarga dulu bila dah kerja lebih 22 tahun baru dapat gaji atas 10k dah kena hisap darah pula cukai banyak kemudahan apa pun X de.

      Like or Dislike: Thumb up 13 Thumb down 5
      • Kami gaji 1.7k nak kawin 4, anak 20, kucing 10 tinggal sebumbung kat flat PPR. Pastu nak beli vellfire seken

        Like or Dislike: Thumb up 9 Thumb down 2
    • RM1.50/L petrol mana? on Mar 29, 2025 at 10:07 pm

      Still waiting for PMX janji above. Looks like rakyat got capatied

      Like or Dislike: Thumb up 2 Thumb down 2
  • impatient on Mar 27, 2025 at 4:45 pm

    Wow, we are still discussing about this? How many more years? GET ON WITH IT!!!

    Like or Dislike: Thumb up 3 Thumb down 5
  • Wonderwhy on Mar 27, 2025 at 4:51 pm

    Really wonder how these genius do the calculation. Or they purposely give us the false news or explanation!

    1) We will use a two-tier pricing system, with both subsidised and non-subsidised prices. More than 85% of the people will benefit from the subsidised price,” the senator added.

    He said 85% benefit from it..

    2) The PM said that Malaysia spends RM20 billion a year in petrol subsidies to keep the price of RON 95 capped at RM2.05 per litre, and moving to targeted subsidies would save the government RM8 billion.

    Now he said rm20b annually spent… so let say rm2b =100% from the percentage for what they spend and now 85% will b benefit from new sub system. and they save rm8b… that would means before this 15% of ppl (t20) swallow 8 billion of petrol subs! does this even make any sense!?

    Like or Dislike: Thumb up 19 Thumb down 3
  • Tin Kosong on Mar 27, 2025 at 4:56 pm

    Kan bagus ikut bossku method… tak payah pening2 create satu lg system yg blm tentu ok ker tak…

    Like or Dislike: Thumb up 4 Thumb down 1
  • jerry on Mar 27, 2025 at 5:11 pm

    Using MyKad fill up foreign number plate vehicle?

    Like or Dislike: Thumb up 8 Thumb down 2
  • Walaun got new bullet after series unsuccesful issues like diesel, addendum, temple, etc.

    Like or Dislike: Thumb up 17 Thumb down 13
    • Akmal salleh on Mar 27, 2025 at 8:02 pm

      Holy socks, ham & cheese sandwich, pakcik family mart

      Like or Dislike: Thumb up 5 Thumb down 2
    • Walanon on Mar 28, 2025 at 7:38 am

      In Anwar we trust

      Like or Dislike: Thumb up 4 Thumb down 4
    • Only walaun think those are unsuccessful because frankly, the opposition has no major issue to harp on. Walaun cybertroopers will of course make noises on media social as usual trying to hoodwink the ignorant fews.

      And walaun criticising efforts for a better targetted subsidies is ironic considering how many % of rakyats in opposition-led states are being sidelined by the state governments.

      Like or Dislike: Thumb up 0 Thumb down 3
      • Anonymous on Mar 29, 2025 at 11:52 pm

        Save on better usage of savings I am ok. But save to enrich civil servants with pay rise that cause 10 billion I don’t think that is right. everything is taxed in this country without subsidizing it will cause serious inflation.

        Like or Dislike: Thumb up 4 Thumb down 0
        • He Long Must on Mar 31, 2025 at 5:30 pm

          Mesia should have its own DOGE and Lim Guan Eng should run it

          Like or Dislike: Thumb up 1 Thumb down 0
      • RM1.50/L petrol mana? on Mar 31, 2025 at 10:48 am

        Opposition will ask Anwar where is his janji to rakyat above. If he cannot fulfil he must step down NOW!!!!

        Like or Dislike: Thumb up 1 Thumb down 0
  • Taman Rimba Kiara dwellers on Mar 27, 2025 at 6:40 pm

    Gives subsidised fuel via Mykad minimised fraud.
    Our neighbourhood senior citizen happy to use their mykad for e-kasih monthly shopping allowance.

    Like or Dislike: Thumb up 11 Thumb down 2
    • Dah Menang Semua on Mar 27, 2025 at 8:23 pm

      “if we can use MyKad for 5.4 million
      recipients with 3,500 stores” – quote

      85% West Malaysians
      6-millions car/bike owners
      Kindergarten will believe this

      Like or Dislike: Thumb up 5 Thumb down 0
    • Rising rider on Mar 27, 2025 at 9:16 pm

      Moat fraud happens in the north where subsidised fuel is sold to thais in exchange for rice. How to control this?

      Like or Dislike: Thumb up 3 Thumb down 0
      • intermilan206 on Mar 29, 2025 at 6:21 am

        Rakyat who eligible for petrol subsidy get it in cash e.g. RM50 or RM150 per month.

        Petrol price at pump is unsubsidised.

        It’s not perfect, but this could prevent large-scale smuggling.

        Individuals who receive cash subsidy could still sell / smuggle their own portion of subsidised petrol if they want to.

        Like or Dislike: Thumb up 3 Thumb down 0
  • Ben Yap on Mar 27, 2025 at 6:44 pm

    5.4 million people’s data is at risk being stolen.

    Like or Dislike: Thumb up 35 Thumb down 12
    • Ben Yap, you alwayove talk shit but never giving any positive idea, huh?

      Like or Dislike: Thumb up 0 Thumb down 6
    • Wee Wee and Akmal n Co on Mar 27, 2025 at 7:26 pm

      Mr Ben Yap
      Our data has been stolen multiple times donkey years ago.
      Now,with all the well trained hackers,one has to be vigilant to avoid being scammed.You have to be on guard 24/7.

      Like or Dislike: Thumb up 4 Thumb down 1
    • kogila on Mar 28, 2025 at 7:48 am

      it’s already stolen and sold multiple times

      Like or Dislike: Thumb up 2 Thumb down 1
    • You surf and buying lazada online, do you worry your personal data being stolen?

      Like or Dislike: Thumb up 2 Thumb down 0
  • Robert Oppenheimer Jr on Mar 27, 2025 at 7:18 pm

    Datuk Seri Amir Hamzah,I like your straightforward reply,unlike the Rafizi dude who likes to give “surprises”and then poke fun at the poor covid stricken rakyat.
    So,in other words..by using MyKad..those non T15 will pump subsidised Ron 95.
    Hopefully,the mechanism is hassle free,without shouting at the Banglas to “bantu” every now and then.
    You have 2 months to fine tune the mechanism,so dont wait till last minute,get hiccups n long queues of motorists fuming at the pumps.
    If this Madani germen is serious in getting another term,give this bantuan on schedule ,also kindly look into the health insurance debacle,placement of doctors,overcrowding of public hospitals.
    This Ron 95 thing is a good acid test,for billions of Rm to be re directed to the more deserving non T15 rakyat.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Poor addicted to subsidy like drug addicts on Mar 27, 2025 at 8:05 pm

    My housewife mom asked to use her mykad for petrol refills coz she heartache see her children’s hardearned salaries go to feeding gomen parasites

    Like or Dislike: Thumb up 8 Thumb down 1
  • Someone will figure out a way to ‘lease’ their B40 Mykad status out to the T15

    Like or Dislike: Thumb up 4 Thumb down 0
  • Rising rider on Mar 27, 2025 at 9:14 pm

    How about those who pay taxes, have salaries below the limit, and do not have MyKad? Why would legal foreigners working and paying the same taxes, not benefit from the subsidy? They contribute the same to the country.

    Like or Dislike: Thumb up 4 Thumb down 3
    • intermilan206 on Mar 29, 2025 at 6:24 am

      But this is not their country, dude.

      Like or Dislike: Thumb up 4 Thumb down 2
    • Retorik pembangkang on Mar 30, 2025 at 1:51 pm

      Then these foreigners should return and contribute to their own countries

      Like or Dislike: Thumb up 2 Thumb down 1
      • Rising rider on Mar 31, 2025 at 4:51 pm

        Good luck then. Who will work in security, construction, house cleaning, hospitality, F&B, palm oil plantation…? Not to mention all high qualified foreign professionals.

        Like or Dislike: Thumb up 0 Thumb down 0
  • anwar menang, rakyat dikencing on Mar 28, 2025 at 8:54 am

    World crude oil prices have dropped and here B40 still paying RM2.05 per litre!!

    Like or Dislike: Thumb up 7 Thumb down 2
  • Will Pu on Mar 28, 2025 at 9:01 am

    There’ll be increase in fuel siphoning by some beneficiaries. Perhaps the base price of Ron 95 should be increased higher to, say RM 3.30 to reduce the gap to the floated price. The floated price should not be too high. To reduce the sibsidy, higher tak can be imposed on cars & bikes of higher price brackets.

    Like or Dislike: Thumb up 1 Thumb down 1
  • No one will know about how many people subsidised. The extra money will just flow to the one who knows the data. Anyway, ringgit has no future with inflation , so more or less, not much impact to the one who knows what happen with current economy.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Sairam on Mar 28, 2025 at 2:32 pm

    Dgr brg2 naik harga sbb diesel price tak stable. Now this, madani govt ckp semo indah2. Lepas kasi jln semo mcm cilaka

    Like or Dislike: Thumb up 3 Thumb down 0
  • There is no need for subsidies if people are working. Foreign-registered cars are already barred from purchasing RON95 fuel—so who is this price differentiation really for? The elites? Who pays the most taxes? And should they pay even more when filling up their cars? This policy seems to punish hardworking citizens while giving free passes to those who refuse to work.

    Like or Dislike: Thumb up 5 Thumb down 0
    • Meleisian politics 101 on Mar 30, 2025 at 1:54 pm

      Rule No. 1
      Weaponize poverty and keep the poor addicted to handouts. This will guarantee votes

      Like or Dislike: Thumb up 4 Thumb down 0
  • Wan 2 Know on Mar 28, 2025 at 4:42 pm

    So, daddy n mommy are $rich. But, son or dottir rides moto kapcai. So, buy oil using daddy/mommy MyKad or Son’s. Since Son still study, can Son qualify for oil subsidi?

    Like or Dislike: Thumb up 0 Thumb down 1
  • Unkle Sohai on Mar 29, 2025 at 3:07 am

    In conjuction with this the RM100K minimum price on CBU EVs should be removed so that rakyat have the option of buying cheap EVs like the BYD Seagull and electric scooters / bikes instead of relying on petrol engines. Then use the billions in petrol subsidy savings each year to build better charging infrastructure powered by non-petroleum sources such as solar plus gigapack batteries creating new jobs and industries. Then it would make holistic sense. Otherwise it would just be an excuse for companies to raise prices.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Playing robin hood again. Dont clump the t10 with the t5. One is working hard and prolly die earlier due to work stress and the other, has zero concerns on money. Likely to have a driver, he gets to enjoy the 85% rate.

    MCA hit it right. No ones listening. If you want to tax, just tax the t15 extra for fuel subsidy. Minus all the operational challenges. Someone is benefiting from the new systems yet again.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Voting for Harapan is my biggest regret on Mar 29, 2025 at 12:33 pm

    Another manifesto debunked, anwar with lower fuel prices now going to increase. Guan eng with abolished tolls now even cny no more free toll. I pay so much tax only to be burdened by more price increase.

    Like or Dislike: Thumb up 5 Thumb down 0
    • Vote for PAS on Mar 30, 2025 at 1:53 pm

      Give us power and we’ll turn this country into another Iran

      Like or Dislike: Thumb up 4 Thumb down 0
      • Lets See on Mar 31, 2025 at 10:51 am

        Iran was doing well and would have a vibrant economy if it wasn’t for US sanctions. Still not their fault. Lets give them a try then.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Unca Soleil on Mar 30, 2025 at 1:09 am

    I think if you look at saving RM8B a year, this promise of getting it solved since Dec 2022 has been much delayed. We lost at least RM16B not getting a right solution out there.

    All the above cons will turn into pros with simple and effective solution that wouldn’t even cost RM500m to rollout.

    Rural no internet? Satellite. Won’t cost RM8B to rollout to 400 of these stations at large. It is a miniscule sum compared to RM8B bleeding every year.

    Use a mobile phone device – Poor, no money? Government subsidise. Each phone is only about RM100. Government pay half, each rural folk pay half. Better still Government pay all. 2 million of them is only RM200m to roll out.

    Upgrading stations, who pays? Government again! 5k petrol stations won’t cost us billions. Probably another RM150m.

    Central system? Another RM50m?

    With RM500m, we will have spare change and a system that only has pros, and little or no cons, provided the right companies do the job properly, which Malaysia definitely will have.

    Today is 27 months into the game and nothing is sorted out. Each month we lose 667m. Just spend that and we get our system up and running. No brainer.

    Sometimes, it is not about technology which is the easiest thing to do if the right brains work on it.

    Unfortunately, the right brains are never given a chance to report for national duty.

    So, we are wasting national resources because we do not have the right people for the job.

    Like or Dislike: Thumb up 1 Thumb down 0
  • awali on Mar 30, 2025 at 6:13 am

    t15 get driver to fill up the tank how la..

    Like or Dislike: Thumb up 0 Thumb down 0
    • Tiputipu on May 06, 2025 at 11:14 am

      Then people will questioning why this mercedes able to fill up ron95.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Government logic: You contribute more taxes to our country? Then you can pay more for petrol too

    Like or Dislike: Thumb up 0 Thumb down 0
  • Percentage for subsidising is sucks. on Apr 24, 2025 at 2:30 pm

    Imagine the ” people ” just choose to be more lazy and have more breeds. Eventually the top 15% will included salaried worker from range RM3500.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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