The government reduced the monthly quota of subsidised petrol under the BUDI95 initiative from 300 litres down to 200 earlier this month. This was in response to the situation in the Middle East and the resulting skyrocketing of oil prices. It looks like there won’t be further changes to this quota, at least for the time being. The Edge cites the Finance Minister’s political secretary Muhammad Kamil Abdul Munim as saying that the government will maintain the temporary monthly quota for now.
Per the report, he said “we have to look at the broader situation, including oil supply. So far, conditions remain under control and the government is monitoring developments”. He added that “we have also diversified our oil sources and are not solely dependent on supplies from Middle Eastern countries”.
Muhammad Kamil also said that the government was continuing efforts to keep the petrol subsidy as is. This is despite the World Bank’s suggestion to raise it from RM1.99 to RM2.05 per litre. “Although there was some initial opposition, the subsidy has proceeded well and we have managed to reduce leakages significantly. That is also why we are able to maintain our current approach”, he said.
Shortly after the reduced BUDI95 subsidy went into effect, there were claims that it was possible to apply for an increased petrol subsidy quota. The Ministry of Finance has since shot down such claims. At the time, the ministry said that while the possibility to apply for additional subsidy quota existed, this was not based on personal requirements. Instead, it was specifically for operational needs, such as e-hailing drivers as well as boat owners. The ministry also added that 90% of consumers use less than the allotted 200 litres.
(Source: The Edge)
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