PKR Youth executive council member Jalex Lee said the blanket price of RM2.05 per litre for RON95 had allowed small groups to exploit the system, often through systematic smuggling.

Lee said the BUDI95 programme was a decisive step forward by Putrajaya to implement meaningful fiscal reforms, while realigning government subsidies to their original purpose of being channelled to Malaysians, particularly those who need them.

He said the requirement of a MyKad to purchase RON95, coupled with the allocation of 300 litres per month, ensured that ordinary citizens would continue to benefit from the subsidies while systematically curbing misappropriation and corruption.

“BUDI95 offers three-in-one economic benefits by reducing government leakages and demonstrating prudent fiscal management, thereby boosting foreign investor confidence,” he said in a statement.

Lee was responding to concerns that the BUDI95 programme could lead to leakages of subsidised RON95 petrol, which will retail at RM1.99 per litre from Sept 30.

In December, the domestic trade and cost of living ministry said seizures of misappropriated RON95 petrol dominated enforcement efforts involving controlled and subsidised goods in 2024.

The ministry’s director-general of enforcement, Azman Adam, said smuggling syndicates switched their focus to RON95 petrol after the government rationalised diesel subsidies.

Under the BUDI95 initiative, Malaysians aged 16 and above with an active driving licence are entitled to purchase up to 300 litres of RON95 petrol per month, with verification via their MyKad.

Non-citizens and ineligible individuals will have to pay the unsubsidised market rate.

Malaysians may check their eligibility for the programme on the official Budi Madani portal.