Kuala lumpur: Setting a tiered pricing system for RON95 under the BUDI MADANI RON95 (BUDI95) programme after the 300-litre quota has been exhausted is considered to maintain inefficiency, according to Finance Minister II Datuk Seri Amir Hamzah Azizan. The proposal suggested pricing RON95 at RM2.10 or RM2.30 once the initial quota is used up, but the government believes this could lead to potential leakages and would not enhance the fiscal position.

According to BERNAMA News Agency, Amir Hamzah emphasized that the government will monitor usage patterns and trends closely and will reassess the BUDI95 limit periodically. The aim is to ensure that the targeted RON95 subsidy policy is consistently refined and strengthened for the benefit of the public and fiscal sustainability.

The minister addressed these points during a session at the Dewan Negara in response to a question by Senator Datuk Abdul Halim Suleiman. The senator had inquired about the rationale behind implementing BUDI95 at RM1.99 for the first 300 litres and a floating price of RM2.60 for usage beyond that, as opposed to establishing tiered prices such as RM2.10 or RM2.30.

Amir Hamzah pointed out that since the inception of BUDI95, the average petrol consumption for private users was only 98 litres per month, which is 33% of the allotted 300 litres per month. He noted that adjusting limits on an individual basis would be challenging given that 14 million people are enrolled in the BUDI95 programme.

He further mentioned that setting individual limits, such as 301 litres for one person and 350 litres for another, would be an endless task for the Finance Ministry. The government plans to explore opportunities for improvement and may reconsider proposals after gathering sufficient data, which will be available one year after BUDI95’s implementation.