CAP president Mohideen Abdul Kader also said the government should adopt the electronic subsidy card system in providing aid for the B40 and M40 groups.

“The government can credit fixed minimal monthly subsidies into the person’s electronic subsidy card which the person can use to purchase petrol, cooking oil, cooking gas, and whatever the government decides to subsidise,” he said in a statement.

He said individuals should only need to present their identity card when making purchases with the subsidy cards.

“Such electronic subsidy cards are relatively easy to implement since the government already has the database on B40 recipients for various forms of aid and the Inland Revenue Board should also have data of those in the lower M40 group,” he said.

Mohideen said the current subsidy system was flawed as it “benefits the rich rather than the poor”.

“This happens because the lower income group is less likely to consume more petrol than the higher income group due to owning fewer cars and having lower engine capacity vehicles,” he said.

He said some might abuse the subsidised fuel prices to smuggle diesel.

Finance minister Tengku Zafrul Aziz has estimated the cost of fuel subsidies to be RM28 billion this year, with RM4 billion already spent as of March.

“For every RM1 of fuel subsidy, 53 sen goes to the T20 group, while 15 sen is utilised by the B40,” he said according to an Astro Awani report.

He said the government is reviewing the electricity and petrol subsidy mechanisms to ensure it is more targeted and focused on the vulnerable.