Link Copiedcheck_circle
Auto News

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

Anis

Share via

kpdn-fuelsale-foreigncar-33-full-full-(2)-full-full_normal-full_normal-(1)-full_normal-(1).jpg

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. Caricarz-Social-PetrolStation-Fuel-8-(1)-full_normal-(1).jpg


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.
Malaysian-E-Wallets.png

Tagged:

fuel subsidy for T20
RON95 subsidy Malaysia
Share This Article

Written By

Anis

Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........

Share via

Related News

Auto News
PM: RON95 At RM1.99 Per Litre With MyKAD Starting End Sept

PM: RON95 At RM1.99 Per Litre With MyKAD Starting End Sept

PM Anwar just announced that RON95 petrol will drop to RM1.99 per litre, benefiting around 18 million Malaysians.

23-07-2025
Auto News
Fuel Subsidy Reform Must Consider Sarawak’s Gaps - DAP Youth

Fuel Subsidy Reform Must Consider Sarawak’s Gaps - DAP Youth

Sarawak DAP Youth urges Putrajaya to reconsider RON95 subsidy cuts, citing the state's poor public transport and crucial oil role.

08-07-2025
Auto News
Gov't Set To Use MyKad For RON95 Subsidy, Citing Success With Sara

Gov't Set To Use MyKad For RON95 Subsidy, Citing Success With Sara

The government has decided to use MyKad for targeted subsidies, citing its effective use in the Sara aid program.

27-05-2025
Auto News
Non-Citizen Vehicles Prohibited From Enjoying RON95 Subsidy

Non-Citizen Vehicles Prohibited From Enjoying RON95 Subsidy

The government does not aim to extend the RON95 subsidy to vehicles owned by non-citizens.

26-11-2024
Auto News
Two-Tiered Pricing For RON95 Poses Troubles

Two-Tiered Pricing For RON95 Poses Troubles

According to PDAM, a two-tiered pricing structure for RON 95 will cause problems.

28-10-2024
Auto News
Strong Economic Growth, Ringgit May Delay RON95 Subsidy Cut - Rafizi

Strong Economic Growth, Ringgit May Delay RON95 Subsidy Cut - Rafizi

Rafizi Ramli says that Malaysia's economic improvements may delay the Ron 95 subsidy cut.

16-10-2024
Auto News
Now's The Best Time To Phase Out Fuel Subsidies, Govt Told

Now's The Best Time To Phase Out Fuel Subsidies, Govt Told

Following the Middle East conflict and the possibility of a spike in crude oil prices, the government has been told to remove fuel subsidies.

08-10-2024
Auto News
RON95, Diesel Price Float Could Save Government RM29 Billion In Subsidies

RON95, Diesel Price Float Could Save Government RM29 Billion In Subsidies

HLIB predicts that floating RON 95 petrol and diesel prices in Malaysia could save the government RM29 billion in fuel subsidies.

21-03-2024

Latest News

Auto News
Amir Hamzah: No Daily Refuel Limits Under Budi95 For Now

Amir Hamzah: No Daily Refuel Limits Under Budi95 For Now

Amir Hamzah: No limit on daily refuels, data analytics to monitor RM1.99 subsidy use to detect abuse.

Auto News
New RM22.7M JPJ Kajang Office Set for 2027

New RM22.7M JPJ Kajang Office Set for 2027

The new RM22.7M JPJ Kajang office will feature modern facilities and improved services for the public by 2027.

23-09-2025
Auto News
ECRL Project Hits 87% Completion by August 2025 – MoT

ECRL Project Hits 87% Completion by August 2025 – MoT

The ECRL project has recorded 87% overall completion as of August 2025, said Transport Minister Anthony Loke.

23-09-2025
Auto News
Amir Hamzah: No Back-to-Back Pumping of RM1.99 RON95 A Day

Amir Hamzah: No Back-to-Back Pumping of RM1.99 RON95 A Day

Amir Hamzah: Govt. won't allow multiple subsidised refuels in a day as BUDI95 takes effect Sept 30.

Auto News
Petron Lubricants Gains SIRIM Certification & Label

Petron Lubricants Gains SIRIM Certification & Label

Petron Malaysia acquires SIRIM genuine product licence certification and label for engine lubricant product line-up.

23-09-2025
Auto News
Govt Will Allow Commercial RV Rentals from 2026 - Loke

Govt Will Allow Commercial RV Rentals from 2026 - Loke

Starting January 2026, RVs can be licensed for commercial use, making self-drive RV holidays safer and regulated.

23-09-2025
Auto News
BUDI95: RON95 Ban on Foreign Cars Still On, RM1.99 for Malaysians

BUDI95: RON95 Ban on Foreign Cars Still On, RM1.99 for Malaysians

BUDI95 keeps foreign-registered cars out of subsidised RON95, only Malaysians with local vehicles can pump at RM1.99 per litre.

Auto News
Rapid Rail Set To Launch Real-Time Crowd Tracking & AI Security

Rapid Rail Set To Launch Real-Time Crowd Tracking & AI Security

Rapid Rail will introduce a live tracker showing coach crowd levels so commuters can board with less stress.

23-09-2025