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Govt to use mechanisms blocking RON95 subsidy abuse, prevent multiple refuels: Amir Hamzah

Finance Minister II says new controls set to monitor suspicious usage and ensure fair allocation of fuel to eligible recipients

1:30 PM MYT

 

KUALA LUMPUR – The government is set to implement a series of control measures to ensure that the newly targeted RON95 petrol subsidy is effectively managed and not misused.

Finance Minister II Datuk Seri Amir Hamzah Azizan revealed that the initiative would include verifying the eligibility of groups requiring more than 300 litres of petrol per month, such as e-hailing drivers.

The verification process will involve confirmation from their respective companies, ensuring that the fuel is genuinely used for work purposes.

“If eligibility is confirmed, they can apply with company support. We can verify usage through e-hailing system records to ensure the fuel is genuinely used for work,” he said, as quoted by Bernama.

The minister further explained that the government would introduce restrictions to prevent excessive daily fuel usage, emphasising that these measures are aimed at safeguarding public resources and ensuring the subsidy is properly directed.

The targeted RON95 petrol subsidy, officially known as BUDI MADANI RON95, will be available to all Malaysians aged 16 and above with a valid driving licence. Each eligible individual will be capped at 300 litres of petrol per month.

The preparations for the subsidy rollout are progressing smoothly, with all oil companies confirming their readiness, including the installation of necessary machinery at petrol stations.

“Machines for in-store use have been provided, and most oil companies have activated systems at payment terminals, usable either inside or outside the stations,” Amir Hamzah said.

He acknowledged that while the preparations are in place, minor challenges could arise with new initiatives.

“Nothing is perfect, and we hope the public will be patient. What matters is that the government will honour its promise,” he added.

To further ensure the subsidy is used correctly, the government will introduce safeguards to prevent multiple refuelling attempts in one day.

“The mechanism will not allow multiple fills in one day. Full details of these controls will be announced later,” the minister explained.

Both the Finance Ministry and the Domestic Trade and Cost of Living Ministry are collaborating with oil companies to implement monitoring tools that can detect suspicious patterns in petrol purchases. This will help prevent misuse and protect government resources.

The targeted subsidy will come into effect on September 30, covering all eligible Malaysians with a valid driving licence. E-hailing and p-hailing drivers will be able to apply for higher quotas, subject to company verification.

“This system will cross-check with e-hailing platforms to ensure the fuel is genuinely being used for work,” Amir Hamzah said.

Foreigners will not be eligible for the subsidy, and enforcement officers will be deployed to ensure compliance from the outset. “We will be watching closely to make sure there is no leakage,” he added.

On the preparations, the minister noted that oil companies have upgraded their pumps and counters since late last year to meet the deadline.

“All companies have confirmed their readiness, and their systems are now active,” he said.

Amir Hamzah urged the public to remain patient in the early stages of the nationwide rollout.

“This involves thousands of stations, and there may be minor glitches at the beginning. However, the safeguards are in place to ensure fairness,” he said. – September 23, 2025

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