No decision yet on withdrawing Budi95 from the wealthy - Loke

The federal government’s proposal to withdraw fuel subsidies for the wealthy has caused a stir, leading Transport Minister Anthony Loke to clarify that the matter is still under study and no final decision has been reached.

In a video released by DAP’s mouthpiece, The Rocket, Loke emphasised that Prime Minister Anwar Ibrahim’s remarks on May 10 were merely a response to media questions rather than a policy announcement.

At the time, Anwar only stated that the government was still reviewing the matter.

“That day, Anwar was responding to media questions; it was not a policy announcement.

“The policy has not been fixed yet. There is no policy stating that we have decided not to give subsidies to the T20. There is no such decision at all.

“Anwar responded to a media question on whether (fuel subsidies for) the T20 would be cut, and he only said the government is still studying it,” Loke said.

He explained that recent cabinet meetings only discussed diesel subsidies and did not touch upon RON95 petrol.

Previously, it was reported that Anwar said the government agrees in principle to remove fuel subsidies for the wealthy.

However, the National Economic Action Council’s crisis management task force is still studying the matter to ensure the policy does not unintentionally place a burden on the upper-middle-income group.

‘Still 200 litres, no reduction’

Loke stated that Anwar has long advocated for subsidy reforms to help the vulnerable while reducing subsidies for those who can afford it.

“In principle, it is correct. In principle, those who are capable should help those who are not, so that a society can be harmonious.

“But throughout the implementation process, we know it will create many problems. That is why when we set the Budi95 policy previously, we did not distinguish between T20, M40, and B40; everyone got it.

“Currently, the Budi95 policy is very clear. If you are a Malaysian citizen and possess a valid driving licence, you are eligible for the subsidy under Budi95,” he added.

Loke explained that the monthly quota for Budi95 remains at 200 litres per person and is not differentiated by income.

He also admitted that defining wealth by income is difficult, as it does not account for geographical factors.

Earlier today, media reports claimed Deputy Finance Minister Liew Chin Tong said the government might reduce the Budi95 quota to 150 litres.

“Data shows that 80 percent of Malaysians use less than 200 litres per month. The next step is 150 litres, because 60 percent of the population uses less than 150 litres per month.”

However, Liew later denied this, expressing regret that his remarks were distorted. The media outlets involved have since withdrawn the report.

Chin Tong denies announcing Budi95 quota cut

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