Budi Diesel quota can be upped, depending on need; only 0.76% use more than 200L RON95 – Amir Hamzah

Ahead of the introduction of the Budi Madani Diesel (Budi Diesel) scheme on July 1, which will see the price of diesel being lowered to RM2.10 a litre, the finance ministry says it will adopt an open approach to the programme and will consider any proposal to ensure that it runs smoothly. According to finance minister II Datuk Seri Amir Hamzah Azizan, this includes the issue of increased quotas, although any decision regarding this would be made based on actual usage data, as Bernama reports.

“When we first started implementing the RON 95 subsidy, some said the quota was insufficient. But now, after several months of implementation, we can see data from January to May this year shows that only 0.76% used more than 200 litres. So, let the system run first and see whether it is effective or not. If there are gaps in the system, the government has no problem reviewing it (the decision),” he said.

It is worth pointing out that the percentage in that RON 95 data set might be somewhat skewed, because those that have exceeded the quota are unlikely to have used their MyKad again for subsequent fill ups, so those wouldn’t have registered.

Whatever the case, Amir Hamzah said previous experience with targeted subsidy programmes, including those for the e-hailing sector, showed that the government is always prepared to make adjustments based on actual usage data.

“When we started implementing the targeted subsidy programme for e-hailing, we received feedback that the quota given was insufficient. So, we reviewed the usage data recorded by e-hailing companies. If someone has high fuel consumption, then their quota will be increased. That is why e-hailing drivers now have two quota levels — 600 litres and 800 litres — and adjustments are made based on data,” he explained.

Under the Budi Diesel scheme, Malaysian citizens with a valid identity card (MyKad) and driving licence (LMM) owning a privately-owned diesel vehicle with a valid road tax (LKM) registered in their name will be able to access subsidised diesel at that price, at a monthly quota of 200 litres, which is shared with Budi95. Foreign-registered vehicles cannot be filled with subsidised diesel.

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