PUTRAJAYA: A basic 200-litre subsidy quota for diesel priced at RM2.10 per litre will be provided under the Budi Madani Diesel programme, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the quota could be used flexibly for the purchase of subsidised diesel or RON95, according to individual needs.
He also said the decision on the basic quota was made following a review conducted under the Budi Madani RON95 (Budi95) programme.
“Based on available statistics, nearly 90% of drivers in Malaysia consume less than 200 litres of fuel per month.
“This entitlement may be used flexibly according to the recipient’s actual needs for the purchase of subsidised diesel or subsidised RON95, subject to their remaining monthly quota.
“This approach ensures subsidies are provided to eligible recipients based on their actual fuel consumption, regardless of whether they use diesel or RON95.
“It also gives recipients the flexibility to manage their fuel usage according to their monthly requirements,” he said at a briefing on the diesel subsidy mechanism here yesterday,
Starting July, Malaysians will be entitled to subsidised diesel at RM2.10 per litre.
The Finance Ministry said the nationwide implementation of the subsidised diesel pricing mechanism would be carried out through a MyKad-based system, similar to Budi95.
Currently, diesel is sold at a subsidised price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared to the unsubsidised price of RM4.37 per litre in Peninsular Malaysia.
Amir Hamzah said the provision of a corresponding monthly quota of 200 litres for subsidised diesel and petrol was based on the fact that diesel vehicle users often have different usage patterns.
“Some individuals use diesel-powered vehicles such as jeeps, vans and other vehicles that are not registered for business purposes but may require higher fuel consumption than typical RON95 vehicle users.
“This ensures the subsidy framework is applied fairly while recognising the differences between petrol and diesel vehicle usage,” he said.
He added that the government would allow eligible diesel users who own qualifying jeeps and pickup trucks to apply for an additional allocation of 100 litres, bringing their total entitlement to 300 litres per month.
“The applicant must own a privately registered diesel vehicle in their name and possess a valid driving licence and vehicle licence.
“In addition to private diesel vehicle owners, the Budi Diesel facility will also be extended to groups such as riverboat operators and owners of generators in remote areas,” he said.
Meanwhile, he said the government’s diesel subsidy rationalisation under the Budi Diesel programme is expected to generate savings of up to RM2bil annually.
He also said the move was necessary as the war in the Middle East and persistently high global oil prices had significantly increased the government’s fuel subsidy bill.
At the same time, he said it is too early to consider increasing the petrol subsidy quota under the Budi95 programme from 200 litres to 300 litres.
