KUALA LUMPUR, Nov 5 – The targeted subsidy for RON95 petrol is essential to mitigate leakage involving usage by individuals who should not benefit from it, said Deputy Finance Minister II Amir Hamzah Azizan.
He said current data estimates that petrol consumption by non-citizens, the commercial sector, and smuggling activities accounts for about 40 per cent of total petrol usage.
“Considering that the RON95 petrol subsidy amounts to around RM20 billion annually, addressing leakage to foreign nationals, the commercial sector, and affluent individuals could result in savings of up to RM8 billion each year,” he said during the Minister’s Question Time in the Dewan Rakyat Tuesday.
Amir Hamzah was responding to a supplementary question from Aminolhuda Hassan (PH-Sri Gading) regarding the government’s strategies to tackle petrol subsidy leakage to non-citizens and the T15 group, while ensuring that the B40 group can access targeted subsidies for RON95 petrol in the future.
In response to Aminolhuda’s original question about the effectiveness of the targeted diesel subsidy under the MyBUDI initiative, Amir Hamzah indicated that recent data reveals a significant decline in diesel sales at petrol stations, which reflects a reduction in smuggling activities involving that fuel.
