Kuala lumpur: More than 14.2 million out of 16.7 million eligible individuals have taken advantage of the BUDI MADANI RON95 (BUDI95) subsidy, consuming over 13.4 billion litres of RON95 fuel, Finance Minister II Datuk Seri Amir Hamzah Azizan announced. The unsubsidised RON95 price, which fluctuates with market prices, applies only to those not eligible for the subsidy, including non-citizens and individuals not meeting the BUDI95 criteria.

According to BERNAMA News Agency, Amir Hamzah highlighted during a Dewan Negara session that fewer than one percent of BUDI95 users consistently consume more than 200 litres of RON95 monthly. The average consumption is approximately 100 litres per month. He was addressing a question from Senator Datuk Bobbey Ah Fang Bin Suan regarding the cost savings from the RON95 subsidy.

Amir Hamzah elaborated on the fiscal savings, estimating annual savings between RM2.5 billion and RM4.0 billion, influenced by global crude oil prices, exchange rates, and actual fuel consumption. In response to Senator Robert Lau Hui Yew's query about the OECD's recommendation to phase out BUDI95, Amir Hamzah stated the government had shifted to a targeted subsidy system from a blanket subsidy.

He explained that the BUDI95 framework allows Malaysian citizens to receive subsidised RON95 for up to 200 litres per month, whereas non-citizens are excluded. This targeted approach has provided fiscal savings for the government. Amir Hamzah acknowledged the OECD's suggestion to eliminate subsidies but emphasized the need for targeted subsidies rather than abrupt policy changes in Malaysia.

The OECD, based in France, has stated that phasing out fuel subsidies is crucial for strengthening Malaysia's financial position as the country progresses towards high-income status.