MyKad use at pump mooted for targeted RON 95 subsidy mechanism

KUALA LUMPUR: The MyKad may be used as a mechanism for the implementation of targeted RON 95 petrol subsidies, says Rafizi Ramli.

The Economy Minister said this would entail eligible Malaysians to scan their MyKads at the pump for subsidised petrol.

Their eligibility would be determined through data stored on a cloud database, he said.

Rafizi said the government had two choices to rationalise RON 95 subsidies.

The first is to let petrol prices reflect market prices and use the savings to provide monthly cash aid to targeted groups.

The second is to implement targeted subsidies, where only those ineligible pay market prices.

"Both have their pros and cons.

"The first is easier to implement but the risk is it can cause high inflation as businesses may use price increases as an excuse to hike up prices," he said, adding that the government had been weighing both options for over 20 months.

While the second option is more difficult to implement, it would keep inflation under control, he said while winding up his ministry's speech on the Supply Bill 2025.

Rafizi also said the Economy Ministry is working on backend matters such as qualification, and the Finance Ministry is looking into matters involving operations.

He also said that Prime Minister Datuk Seri Anwar Ibrahim never mentioned that the T15 category is classified by gross household income, saying that this was a "mere yardstick".

The government, he said, had indicated that it was moving away from gross household income and moving to a fairer approach where household size, location and commitments are considered.

He said the ministry had previously stated that net disposable income would be the yardstick for income classification.

The RON95 petrol subsidy rationalisation exercise will begin in the middle 2025.