KOTA KINABALU, June 23 — BUDI Diesel, the targeted subsidy programme that uses MyKad for verification, is expected to reduce fuel leakages by up to one billion litres annually, resulting in lower subsidy expenditure and a more stable domestic fuel supply.
Finance Minister II Datuk Seri Amir Hamzah Azizan said subsidy leakages had been prevalent in the diesel sector as MyKad-based verification was not as widely implemented as it is for RON95.
He said the use of MyKad ensures only eligible Malaysians receive subsidised fuel, while non-citizens must purchase diesel at market prices.
“We estimate that leakages can be reduced by one billion litres of diesel a year. This will not only curb improper subsidy payments but also help ensure a stable fuel supply within the country,” he said at a media briefing on targeted diesel subsidy reforms here today.
Also present were Sabah Deputy Chief Minister II and state Finance Minister Datuk Seri Masidi Manjun.
Amir Hamzah said the diesel subsidy would mirror the nationwide targeted RON95 subsidy model.
On registration, he said eligible recipients of the basic subsidy would not be required to register, as eligibility would be determined automatically through existing government databases.
However, individuals seeking an additional quota of 100 litres per month under the BUDI Diesel programme must apply on the designated online portal or seek assistance at Inland Revenue Board (LHDN) offices.
Amir Hamzah also expressed confidence that the use of MyKad would not pose difficulties, particularly in rural and remote areas, as a similar mechanism is used for the Sumbangan Asas Rahmah (SARA) programme.
He added that the government would continue engaging stakeholders and gathering feedback to ensure the targeted diesel subsidy programme achieves its objectives.
