Govt considers MyKad to verify RON95 subsidy at the pump

BUDGET 2025 | The government is finalising a mechanism to implement targeted RON95 subsidies starting middle of next year, according to Transport Minister Anthony Loke.

Speaking to reporters in Parliament, he said one proposal being considered is for Malaysians to produce their MyKad at the petrol pump, as foreigners will be ineligible for subsidised petrol.

“The principle and policy direction mentioned by the prime minister is that 85 percent of the population will not be burdened by an increase of (the price of) RON95,” he stressed.

“MyKad can prove that we are Malaysians. So whenever you go to the petrol station, then just like you slot in your credit card or your BonusLink card, you just slot in your MyKad so that the pump price will reflect a subsidised rate for Malaysians.

“We still have to finalise (the mechanism) in the next few months. I think more details will be announced by the Finance Ministry in the next few months,” Loke said.

Earlier, Prime Minister Anwar Ibrahim, who is also the finance minister, announced in the Dewan Rakyat that the government in Budget 2025 plans to implement targeted RON95 subsidies starting mid-2025.

He said 85 percent of the public will continue benefiting from RON95 subsidies - which will cost the government RM12 billion.

He added that the blanket subsidy currently benefits the “ultra-rich and foreigners”, and these funds are better channelled for education, healthcare, public transportation, and to help the Orang Asli.

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