Step taken to ensure steady supply amid Mideast tensions
PETALING JAYA: The subsidised RON95 petrol initiative will be reduced to 200 litres starting April 1, as part of the government’s temporary measure to guarantee supply and to manage demand prudently due to the ongoing conflict in the Middle East.
Prime Minister Datuk Seri Anwar Ibrahim said the reduction of the 200-litre petrol subsidy from 300 litres was based on findings of the people’s consumption of the fuel.
“We know that this initiative has provided many benefits to the people and we also had to take some additional steps.
“Therefore, we have examined whether the use of Budi95 is sufficient. We found that the average use of Budi95 is around 100 litres.
“This means that the majority of the people use only 100 litres per month, and almost 90% of the people use less than 200 litres per month, so they are not affected,” he said during a special address broadcast live yesterday.
Anwar also emphasised that the subsidised petrol initiative will remain unchanged at RM1.99 per litre.
“All countries, especially neighbouring countries, increased the price of oil, but Malaysia decided to maintain the price of Budi95 oil at RM1.99.
“This step is, of course, temporary (as we are) waiting for the oil situation, oil supply and the world economy to recover, but there are no signs of that yet,” he said.
“So to ease the burden on the people, I emphasise that Budi95 will remain at RM1.99 per litre.”
For e-hailing and gig workers, Anwar said the ceiling limit on subsidised RON95 petrol under Budi95 will be retained.
“We maintain the ceiling limit of up to 800 litres, taking into account their responsibilities, their jobs, and the work they have to do,” he said.
Budi95 provides eligible citizens with subsidised RON95 petrol at RM1.99 per litre (300 litres per month for citizens and 800 litres for e-hailing drivers).
Anwar also emphasised that these measures are taken with careful consideration and with the people’s welfare in mind.
“I sincerely ask for the public’s understanding and cooperation regarding the steps we are compelled to take in light of the pressures we face. I am aware there will be various criticisms, which are unavoidable,” he said.
“But rest assured, the government does not want the people to feel burdened. Every measure is taken with care and prudence.”
Anwar also expressed gratitude to the President of Iran for allowing access to the Strait of Hormuz, which enabled the government to release Malaysian oil tankers and the workers involved so they could continue their journey home.
“For us now, we have to deal with the effects of the blockade in the Strait of Hormuz, then the war, the supply of oil and gas that has stopped, all of which have had an impact on us.
“Although again I say, we are in a much better situation because of PETRONAS’ capabilities all this time,” he said.
