According to the ministry of finance (MoF), almost 14 million Malaysians are actively enjoying RON 95 petrol at a price of RM1.99 per litre through Budi Madani RON 95 (Budi95) up until May 31 this year.
This was revealed in a written parliamentary reply to a question by Mohd Syahir bin Che Sulaiman, who asked about the effectiveness of the targeted fuel subsidies through the Budi Madani program, which includes both Budi95 and Budi Madani Diesel (Budi Diesel).
The ministry pointed out that the number of active Budi95 users accounted for 85% of the 16.5 million individuals that are eligible. It added the implementation of Budi Madani involved the use of 11.1 billion litres of fuel with a sales value of around RM22.1 billion, of which RM11.2 billion was the cost of subsidies borne by the government.
In terms of fiscal savings, the shift to targeted fuel subsidies through Budi95 is expected to generate savings of between RM2.5 billion and RM4 billion a year, subject to crude oil price changes, currency exchange rates and actual consumption patterns. The ministry also reiterated that the set quota of 200 litres per month was adequate, as almost 90% of Malaysians used less than that amount, with the average being around 100 litres per month – additional quota can be requested.
“In this regard, it can be concluded that the implementation of Budi95 proves that subsidy reform can be implemented prudently by ensuring that the majority of the people continue to enjoy fuel subsidies, while reducing leakage and strengthening the country’s fiscal position for the benefit of the people as a whole,” the ministry ended its reply.
Looking to sell your car? Sell it with Carro.
