by Theleaders | June 25, 2026 2:37 pm
KUALA LUMPUR, June 25 — Putrajaya’s pivot towards using the MyKad for subsidised diesel and uniformed pricing could save the government up to RM2 billion a year, Finance Minister II Datuk Seri Amir Hamzah Azizan told Parliament this morning.
The system change was part of reforms the Anwar government announced recently as it battles massive diesel smuggling in the country’s east coast states, where the price is slightly cheaper than mainland Malaysia.
Subsidised diesel leakage persisted despite efforts to curb smuggling. The minister revealed the amount of diesel sold at petrol stations in Sabah and Sarawak in March and April 2026 reached 200 million litres per month, estimated to be twice as high as the expected level based on the number of registered diesel vehicles.
“The reform gives the government the opportunity to allocate a portion of these savings to lower the price of subsidised diesel to RM2.10, down from RM2.15 per litre,” he said during Question Time.
“This means that this reform allows Malaysians to enjoy the privilege of citizenship by obtaining diesel at a lower price.”
Before the switch to identification-based distribution, the government adopted a cash transfer system for subsidised diesel for West Malaysia, while Sabah and Sarawak received direct subsidies at the pump.
The subsidised rate of diesel in the two states was RM2.15 per litre. Putrajaya said this led to leakages resulting from smuggling and abuse by non-citizens and industries.
Amir said the switch to the MyKad system for diesel came on the back of BUDI95’s major success of verifying fuel subsidy eligibility using the chip-based identification card.
Based on BUDI95 usage data between October 2025 and May 2026, less than 1 per cent of BUDI95 users consistently consumed more than 200 litres of RON95.
Referring to diesel consumption data from the Department of Statistics Malaysia (DOSM) statistics, over 80 per cent of users recorded usage below the 200-litre per month threshold, with an average consumption of around 140 litres per month.
“Nevertheless, taking into account that the majority of the rakyat’s diesel vehicles are jeeps or pickup trucks…the government is providing an additional BUDI MADANI eligibility of another 100 litres that can be applied for,” Amir said, adding this segment serves as the primary transport for goods by small traders and passenger vehicles in the rural interiors.
DOSM data indicates that 95 per cent of diesel users consume less than 300 litres per month, he added, making total eligibility of 300 litres per month sufficient for the vast majority.
Source URL: https://theleaders-online.com/mykad-linked-diesel-subsidy-reforms-could-save-putrajaya-up-to-rm2b-annually-says-amir-hamzah/
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