Budi95 quota reduced by 100 litres amid Middle East conflict

Prime Minister Anwar Ibrahim has confirmed Putrajaya’s move to reduce the standard monthly entitlement for subsidised RON95 petrol, priced at RM1.99 per litre, from 300 litres to 200 litres.

Announcing the matter during a special address today, Anwar said that while Malaysia has opted to maintain the price under the Budi95 subsidy scheme, the reduced ceiling limit will be enforced on April 1.

He also assured that a majority of those eligible for the subsidy are not expected to be affected by the reduction.

“We found that the average Budi95 usage is around 100 litres - meaning the majority of the rakyat use only 100 litres a month, and nearly 90 percent use less than 200 litres a month.

“This measure is, of course, while waiting for the oil supply situation and the world economy to recover, but there are no signs of that yet. Thus, to ease the people’s burden, I emphasise that the price of Budi95 remains at RM1.99 per litre,” Anwar said.

On Sept 22 last year, Anwar announced that the government would be subsidising RON95 petrol for all Malaysians with a valid driving licence, with consumers paying the market-determined floating price once they had exceeded the monthly threshold.

Yesterday, the Finance Ministry announced that the retail prices for RON97 and unsubsidised RON95 petrol will increase by 60 sen per litre starting today, while diesel in Peninsular Malaysia will jump by another 80 sen to RM5.52 per litre.

READ MORE: Experts: West Asia war could push up Malaysia's food costs

This marks the third successive week of sharp price increases for RON97 and diesel in the peninsula since March 11, as the government continues to adjust domestic fuel prices in response to sustained pressure on global oil markets.

Quota for e-hailing, gig workers stays

Anwar today affirmed that the 800 litres quota for e-hailing and gig workers will be maintained, considering their responsibilities and jobs.

Despite soaring diesel prices, Anwar said Sabah and Sarawak will still continue to enjoy subsidised diesel at RM2.15 per litre, due to geographical and logistical factors.

“We must be vigilant and take tighter control measures and (implement) more effective enforcement… leakages must be curbed and controlled,” said Anwar, who is also the finance minister.

He added that measures to limit refuelling will also be introduced:

• Light land public transport, goods, and private vehicles: maximum 50 litres per purchase;

• Land public transport and goods vehicles not exceeding 3 tons: maximum 100 litres per purchase;

• Vehicles exceeding three tonnes: maximum 150 litres per purchase.

“This is to guarantee and ensure that supply is available, and can be distributed fairly and sufficiently to all.

“Without this adjustment, we worry there will be a tendency to hoard and smuggle, as has been detected all this while,” Anwar added, warning that any detected smuggling attempt will face the full strength of the government machinery.

The prime minister also said Putrajaya is considering other measures, including implementing more flexible working arrangements such as the option to work from home.

“Civil servants will, gradually and selectively, be able to work from home, and I believe, Insya-Allah, that beyond the public sector, we also urge the private sector to implement (such a move) as several companies and banks have been practising all this while.

“The government will continue to maintain discipline, avoid extravagance and leakages, and ensure that Malaysia's economic growth momentum remains extraordinary and exceptional,” he added.

‘Meticulous and prudent’

Earlier in his address, Anwar said Malaysia cannot assume it is spared from issues arising from the Middle East conflict, including the blocking of the Strait of Hormuz as well as disruptions to oil and gas supplies.

“We are in a much better position due to the capabilities of Petronas, all this while…(but) can we just leave things as they are without any action and think that we are exempt from all these problems?

“Food supply is affected, and prices will certainly rise. Fertiliser is the same, and of course, oil and gas… There are countries where the impact is far worse than ours, but this does not mean we are completely spared,” the prime minister said.

As such, he said, Putrajaya is taking a more inclusive approach to guarantee supply while simultaneously managing demand to be more prudent and cautious.

He also acknowledged that while certain quarters might criticise the government’s initiatives, such measures have been carefully considered as the rakyat’s well-being remains a priority.

“We want to take several steps for which I earnestly seek the people's cooperation and understanding. These are steps we have been forced to take because of the pressures we face.

“I believe there will be some who make various accusations and interpretations that we cannot avoid, but believe me, I do not want the people to feel pressured, and our measures are very meticulous and prudent,” Anwar said.

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