KUALA LUMPUR: Some RM2.5bil of savings are expected to be generated through the Budi95 fuel subsidy programme this year, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said these savings are subject to global crude oil prices and foreign exchange rates.
He explained that the savings will be channelled back to the rakyat through various programmes, including the Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah (Sara).
According to him, some RM200mil has already been spent by about RM2mil Malaysians following the second Sara rollout on Monday (Feb 9).
“We are committed towards growth through reforms that prioritise the rakyat. Fiscal reforms should not just disappear but be channelled back to the rakyat.
“While we move forward, the rights and welfare of the rakyat must also be upheld,” he said during question time in the Dewan Rakyat on Wednesday (Feb 11).
He also revealed that the cabinet had previously rejected a proposal to exempt those earning RM13,000 and above from enjoying the RON95 petrol subsidy.
“Upon review, we found that this amount is too low as there are civil servants, farmers, traders and more who are in this category.
“Then, there was another proposal leaning towards those earning RM25,000 and above monthly. This would make more sense, but it only made up 2% of the rakyat and this was just not worth it.
“That is why we decided to take the current route,” he said.
Anwar added that rationalising subsidies was necessary, given the government's inherited debt and deficits that could be financed sustainably.
However, he said the government chose to proceed with such measures in phases to not impact the rakyat, noting how rationalised RON95 subsidies were only carried out following that of diesel and electricity.
Anwar also dispelled claims that the 300-litre quota is insufficient, saying the data showed otherwise.
The current average monthly usage, he said, is only 100 litres, with about 90% of users not using more than 200 litres.
He also noted that there are about 3.1 million transactions under the Budi95 programme daily or 96 million transactions a month, indicating that the entire process is going smoothly.
“During debates, some say the quota is not enough but our figures say it is not true,” he said.
The Budi95 programme was rolled out in September last year.
Only eligible Malaysians can purchase RON95 petrol at a subsidised price of RM1.99 per litre.
Anwar was responding to questions by Fong Kui Lun (PH-Bukit Bintang) who asked about projected savings under the Budi95 programme this year and how the savings will be used to alleviate the cost of living, alongside providing additional assistance to the lower and middle income groups.
