What safeguards will prevent RON95 subsidy misuse?

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Safeguards to Prevent Misuse of RON95 Subsidy Detailed

The government is implementing several safeguards to prevent the misuse of the new targeted RON95 petrol subsidy, which is set to begin on September 30 under the BUDI95 programme. These measures include monitoring individuals who attempt to refuel multiple times within a single day and a specific system for e-hailing and p-hailing drivers. The aim is to ensure the subsidy reaches eligible recipients while controlling potential leakages.
Daily Refuelling Limits for Individuals

A key mechanism within the BUDI95 programme will prevent individuals from repeatedly refuelling their vehicles within the same day. This system is designed to monitor and restrict multiple transactions, thereby deterring individuals from exploiting the subsidy beyond its intended use. While full details of these control measures are yet to be announced, the core principle is to limit daily access to the subsidised fuel.
Special Provisions for E-hailing and P-hailing Drivers

Recognising the essential role of fuel for e-hailing and p-hailing drivers, a flexible system has been established for these groups. Drivers can submit applications with supporting documentation from their respective companies, which will serve as confirmation of their genuine activity. This documentation, combined with verification of their usage records and company data, will allow for a higher fuel quota if needed, while still enabling oversight.
Collaboration with Petrol Companies and System Testing

Preparations for the nationwide rollout have been underway since late last year, involving close collaboration between the government and petrol stations. Nearly all petrol companies have conducted tests on the Outdoor Payment Terminal (OPT) system, which will facilitate direct subsidy access at the pump for eligible Malaysians. This extensive testing and preparation aim to ensure a smooth implementation of the subsidy programme.

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What safeguards will prevent RON95 subsidy misuse?

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