Treasury secretary-general Johan Mahmood Merican said Putrajaya was not looking to alter Budi95’s parameters, adding it was “too early” to revise either the monthly quota or the subsidised price.
Recently, online messages appeared to quote Johan as saying that the government was looking to review the newly-introduced targeted fuel subsidy quota.
“The government has never said, nor have I said, that we will be reducing the quota or eligibility limit from 300 litres to 200 litres,” he told FMT in an exclusive interview.
Johan explained that the 300-litre quota set was intended to meet the genuine personal needs of Malaysians while deterring abuse.
“Statistically, when the government was trying to identify the eligibility limit, the average consumption was noted to be only at about 80 litres a month. But of course, if you put the limit at 80 litres, you’re only keeping half the population happy because it’s the average.
“At 180 litres, you already cover 99%. At 300 litres, it’s estimated we’re covering 99.3%.
Johan said that in the first few weeks of the Budi95 initiative, fewer than 0.1% of registered motorists exceeded the 300-litre monthly cap.
“So that gives us comfort that at that level, it should be sufficient for almost everyone,” he said.
He explained that the quota also helps prevent smuggling and commercial misuse, while also recognising the unique needs of lower- to middle-income groups who may live further from work and take longer commutes.
“We wanted to ensure that 300 litres was sufficient for them. So certainly, there’s no plans to reduce (the quota) from 300 to 200 being considered at this time.”
The Budi95 programme was introduced at the end of September to ensure that RON95 petrol subsidies benefit only eligible Malaysians, while curbing leakages to foreigners and commercial entities.
Under Budi95, Malaysian citizens aged 16 and above who possess a valid driving licence can purchase up to 300 litres of RON95 petrol per month at the subsidised price of RM1.99 per litre.
Any additional fuel purchased beyond this quota will be charged at the market rate.