The government has saved RM800 million since the Budi Madani RON 95 (Budi95) programme began on September 30. Prime minister Datuk Seri Anwar Ibrahim said this was from ensuring that fuel subsidies were only enjoyed by Malaysians, with the programme effectively curbing leakages that previously benefited more than 3.5 million foreigners as well from fuel smuggling.
He said that every ringgit saved from the targeted fuel subsidies is being channelled back to the people through initiatives such as the Rahmah Cash Contribution (STR) and the Rahmah Basic Contribution (Sara), in addition to upgrading clinics and hospitals, improving roads and strengthening infrastructure, as Bernama reports.
As previously reported, 13.9 million out of 16.55 million eligible Malaysians (84%) bought 2.59 billion litres of RON 95 petrol at the subsidised RM1.99 a litre (RM5.16 billion total) since the start of the programme up to November 30.
It was also indicated earlier this month that the government is expected to generate savings of around RM2.5 billion to RM4 billion a year, subject to global oil prices, based on domestic consumption survey data prior to Budi95’s implementation. The yearly savings should more than match projections, based on the amount reported for the two plus month period.
Under the programme, all Malaysian MyKad holders aged 16 and above with a valid driving licence are eligible to purchase up to 300 litres of subsidised RON 95 fuel per month at RM1.99 per litre, compared with the price of the fuel at its weekly market float price without subsidy, which is presently RM2.62 per litre for the December 18-24 week.
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the money saved can be donated to TalesPine
800mil against a 30billion ringgit deficit is still not significant enough, ev incentives should be pushed further to reduce petrol reliance.
Do not donate to others!
While 95 reduced from 2.05 to 1.99, the implement do addresses leakages from fuel smuggling. that helps to subsidize our neighboring countries.
If you ask me about budi95 effectiveness, it looks good to me.
The only problem is, how much have we spent and also cost of maintaining budi95. it needs to be offset from the saving, to show the true net saving.
800mil saving in less than 2 months time is impressive. Can hit around 5billion a year if the trend goes on.