How will Budi95 prevent RON95 fuel leakage and smuggling?

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Budi95 Initiative Targets RON95 Leakage Through Citizen-Centric Subsidy Mechanism

The Budi Madani RON95 (Budi95) petrol subsidy initiative aims to prevent leakage and smuggling of RON95 fuel by implementing a targeted subsidy scheme exclusively for Malaysian citizens. This approach ensures that the subsidised fuel benefits only those who contribute to the nation's taxes, while non-citizens will pay a higher price. The system is designed to handle a significant volume of transactions, with servers capable of processing over 30,000 transactions per minute to ensure a smooth rollout.
Citizen Eligibility and Identification at Point of Sale

Eligibility for the Budi95 subsidy is restricted to Malaysian citizens who possess a valid driver's licence. The implementation necessitates the use of an identity card when purchasing petrol, serving as a direct mechanism to verify citizenship and prevent foreign nationals from accessing the subsidised RON95 price. This measure is intended to curb the previous practice where non-citizens could obtain fuel at subsidised rates, thereby reducing opportunities for illicit trade and diversion.
Differentiated Pricing for Non-Citizens and Foreign Vehicles

While Malaysian citizens will benefit from the reduced RON95 price of RM1.99 per litre, non-citizens residing in Malaysia with registered Malaysian vehicles will still be able to purchase fuel at a relatively low price of RM2.60 per litre. However, this price does not include the full subsidy. Vehicles bearing foreign licence plates will be required to purchase the more expensive RON97, further segmenting the market and preventing foreign exploitation of the RON95 subsidy.
Phased Rollout and Public Information Channels

The Budi95 initiative is being rolled out in phases, beginning with approximately 300,000 police and military personnel who will receive the subsidised price from September 27. Recipients of the Rahmah Cash Assistance (STR) will gain access from September 28. The broader eligible population, estimated at 16 million Malaysians aged 16 and above with a MyKad and active driver's licence, will be able to access the subsidy from September 30. The public can verify their eligibility and obtain further information through the dedicated www.budimadani.gov.my portal or by contacting the helpline at 1300-88-9595.

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How will Budi95 prevent RON95 fuel leakage and smuggling?

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