B40, M40 benefit most from BUDI95 fuel subsidy, says minister

The Budi RON95 initiative has benefited the B40 and M40 income groups the most, says finance minister II Amir Hamzah Azizan.

He said these groups have derived greater benefits from the implementation of the fuel subsidy compared with those from the T20 group, Bernama reported.

Amir added that this conclusion is based on current consumption data, which allows the government to identify patterns in the purchase of subsidised petrol across different income groups.

“In fact, I now have perfect data because everyone who utilises the subsidy uses their MyKad at the petrol station, and we have a record of every single purchase made in the country.

“So, our current data shows that the distribution of fuel subsidies provides the most benefit to the M40 and B40 groups,” he said during a podcast featured on the “Duit Faiz” TikTok account.

Amir added that the government is currently refining the figures based on this data and is expected to provide further details within the next two months.

He pointed out that the findings contradict the common perception that the T20 group consumes more fuel than the B40 and M40 groups, a belief often attributed to the assumption that the T20 group owns more vehicles with larger engine capacities.

Amir said it was important to correct public perception regarding the distribution of benefits under the BUDI95 initiative across different income groups.

Under the BUDI95 initiative, the price of RON95 petrol is set at RM1.99 per litre, down from the previous price of RM2.05 per litre, with each individual entitled to a quota of up to 300 litres per month.

Only Malaysians can enjoy the fuel subsidy, as the MyKad is required when filling up at the petrol station.