BUDI Diesel to cut leakages by 1 billion litres a year

KOTA KINABALU: The targeted diesel subsidy programme 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.

From July 1, a total of 700,000 private diesel vehicle owners nationwide will enjoy subsidised diesel at RM2.10 a litre under the BUDI Diesel initiative.

Finance minister II Amir Hamzah Azizan today said subsidy leakages are prevalent in the diesel sector because MyKad-based verification is not as widely implemented as it is for RON95 petrol.

He said the BUDI Diesel programme would ensure that only eligible Malaysians receive subsidised fuel, while non-citizens must purchase diesel at the prevailing market price.

“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 in the country,” he said at a media briefing on the implementation of the targeted diesel subsidy reform here today.

Also present was Sabah deputy chief minister II and state finance minister Masidi Manjun.

Eligibility for the BUDI Diesel programme will be determined automatically through government databases.

However, individuals seeking an additional quota of 100 litres per month must apply through the designated online portals or seek assistance at Inland Revenue Board offices.

Amir also expressed confidence that the use of the MyKad would not pose difficulties, particularly in rural and remote areas, as a similar mechanism was already successfully implemented through the Sumbangan Asas Rahmah (SARA) programme.

He said about 1,500 premises are involved in the SARA programme in Sabah alone, including outlets in remote areas.

Amir said the experience gained through SARA showed that the MyKad can be effectively used as a verification and redemption tool and has been well received by the public, including in Sabah and Sarawak.

He added that the government would continue engaging stakeholders and gathering feedback to ensure that the targeted diesel subsidy programme is implemented smoothly and achieves its objectives without affecting eligible recipients.