Malaysia studying use of MyKad for targeted diesel subsidies to reduce risk of leakages, achieve savings

The Malaysian government is studying the possibility of using the MyKad mechanism for a targeted subsidy system for diesel fuel, following its implementation for RON 95 petrol through the Budi Madani RON 95 (Budi95) programme, reported New Straits Times.

The use of the MyKad under the Budi95 scheme is more organised and helps reduce the risk of leakages, while achieving savings without drastically altering the purchasing patterns of consumers, said finance minister II Datuk Seri Amir Hamzah Azizan.

The successful distribution of Sumbangan Asas Rahmah in both urban and rural areas provides a positive indication that a MyKad-based distribution system for diesel subsidies is not impossible to implement, and as such the government is assessing its feasibility, however transitioning to this approach requires a detailed study as diesel usage patterns vary by region, particularly in Sabah and Sarawak, he said.

Malaysia studying use of MyKad for targeted diesel subsidies to reduce risk of leakages, achieve savings

“There are also areas without access to conventional petrol stations, relying instead on alternative distribution methods. If we want to implement (MyKad usage) for diesel, we must ensure that supply is not disrupted. We need time to ensure there is nothing we do not understand that could become an obstacle. That is one of the aspects the finance ministry, together with the domestic trade and cost of living ministry, is currently examining,” he said.

For diesel fuel, the finance ministry announced at the beginning of this month that the monthly cash assistance under the Budi Madani Diesel initiative will be maintained at RM300 for the month of April 2026, having been increased from RM200 to RM300 in March.

Meanwhile for RON 95 petrol, the move to temporarily adjust the monthly RON 95 quota to 200 litres under the Budi Madani RON 95 (Budi95) scheme from 300 litres instead of raising the subsidised price of the fuel is aimed at protecting the welfare of the majority of Malaysians, and the rakyat would be affected if the government opted to raise the subsidised price of RON 95 rather than reduce the allocated quota, according to Amir Hamzah.

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