RON95 Subsidy: Necessary To Prevent Leakage, Gov't Considering E-wallets, MyKad For Mechanism

Finance Minister II Amir Hamzah Azizan stated that the targeted subsidy for RON95 gasoline is necessary to prevent leakage involving its use by people who are not eligible for it.
According to current data, approximately 40% of all gasoline usage is attributed to non-citizens, the commercial sector, and smuggling activities, according to Amir Hamzah.

He further claimed that addressing leakage to foreign nationals, the commercial sector, and wealthy individuals could save up to RM8 billion annually, given that the RON95 petrol subsidy amounts to approximately RM20 billion annually.

Additionally, according to Amir Hamzah, recent data shows a sharp drop in diesel sales at gas stations, which is indicative of fewer smuggling operations involving that fuel.

He added that while commercial diesel sales have increased by almost 50%, or four million liters per day, diesel sales at gas stations have dropped by roughly 25%, or almost seven million liters per day.
Regarding the mechanism for the RON 95 targeted subsidy, which will be implemented the following year, the minister claims that the government is considering using e-wallets and MyKad as a way to implement targeted subsidies and assess the eligibility of subsidy recipients.
Everyone would pay the market price at the pumps if e-wallets were used as a disbursement method, and a predetermined amount would be credited each month, Amir Hamzah says, adding that although the payments for diesel are deposited into bank accounts, the plan would be comparable if it were implemented.