The government says it is in the final stages of assessing eligibility and the delivery mechanism for the targeted RON 95 fuel subsidy, with implementation plans for this expected to be revealed at the end of September.
According to finance minister II Datuk Seri Amir Hamzah Azizan, the main goal was to ensure that those who truly need fuel subsidies continue to receive assistance from the government, The Star reports. “Currently, the government is in the final phase of refining eligibility criteria and the implementation method for the targeted RON 95 petrol subsidies, in consultation with all relevant stakeholders,” he said in parliament.
“This includes exploring multiple implementation mechanisms, such as testing the use of MyKad, e-wallets, and oil company applications, to ensure the initiative is implemented efficiently and without complicating matters for the rakyat,” he said.
He said this in reply to Datuk Seri Wee Ka Siong’s (BN-Ayer Hitam) questions on the matter, in which Wee had asked the finance ministry to reveal the indicators and criteria used by the government to determine individuals or households in the T15 category. He also asked the ministry to explain whether the criteria will be based on gross income, disposable income, location of residence, type of vehicle or other data sources.
Amir Hamzah said the information from the Pangkalan Data Utala (PADU) socio-economic database will be used as a reference to determine eligibiility. “PADU centralises data from various government agencies, including the inland revenue board (LHDN), road transport department (JPJ) and national registration department (JPN). This approach is intended to ensure that the targeting is holistic and precise, based on verified and up-to-date data, so that aid reaches only those who are truly eligible,” he said.
As for the delivery mechanism, he reiterated that it is expected to be based around the use of MyKad, where the card is inserted into a reader at a petrol pump terminal, which then connects to the government’s centralised database to determine eligibility and fuel quota. “If eligible, the (person) can purchase RON 95 petrol at a subsidised price of RM1.99 per litre. If not, they will have to pay the full price at the pump, without subsidy,” he explained.
He said the MyKad method was also being used for the disbursement of Sumbangan Asas Rahmah (SARA) assistance, where each eligible recipient is automatically registered and receives aid for basic necessities, which can be used to purchase approved essential goods at selected retail stores nationwide using their MyKad.
Wee asked about the measures taken for MyKad misuse, and how unnecessary issues would be avoided if there was a problem with the pump attendant. Amir Hamzah replied that the ministry had discussed the matter with fuel companies to ensure that the method would be simple and that the process for fuel purchase would be automated.
“When a person arrives at the petrol station, they simply scan their MyKad on the machine. The system will verify their eligibility for subsidised fuel. If they are eligible, they can buy RON 95 at the subsidised price. If not eligible, they can still buy RON 95 but (at) the full, unsubsidised price,’ he said.
“There will be no intervention needed from the pump attendant; the entire process is automated. If a foreigner tries to buy petrol, since they do not have a MyKad, they will not be able to tap the card. This mechanism helps curb subsidy leakage. By leveraging MyKad and technology, we can effectively reduce leakage,” he added.
He said that the government will set up a public portal to check eligibility for the targeted RON 95 subsidy, along with a contact centre to allow the public to seek assistance, provide feedback or lodge complaints through various channels.
Amir Hamzah added that the aspect of quota management would be looked into, as it was important. “We must set quotas to prevent misuse. The ministry is carefully considering how to allocate quotas, ensuring that ordinary citizens have enough subsidised fuel, while managing risks of overuse or fraud,” he said.
He indicated that the rationalisation plan will implement a monthly capped quota based on user type, with higher allocations for e-hailing and p-hailing drivers.
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