KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has instructed the Ministry of Finance (MOF) to urgently review the targeting process for diesel subsidies, proposing the use of a mechanism similar to that of BUDI95.
Minister of Communications and Government MADANI spokesperson Datuk Fahmi Fadzil said the MOF has also been asked to present the details of this process either at the Economic Action Council (MTEN) meeting next Tuesday or at the Cabinet meeting on Wednesday.
He added that the government is considering the best method to convert the current BUDI Diesel Individual cash transfers into a mechanism akin to BUDI95.
“And we expect that, when the time comes, this will especially benefit Malaysians, such as those driving vehicles like pickup trucks. The approach is simpler, more efficient, and more effective if we look at the BUDI95 implementation,” he said during a briefing on the global energy crisis and a post-Cabinet press conference today.
Fahmi emphasised the government’s firm stance on addressing diesel leakages, smuggling, and misuse, with several immediate enforcement measures implemented nationwide.
“This includes deploying security teams, particularly the Royal Malaysia Police, to over 150 high-risk petrol stations in border areas to ensure suspected smuggling or misappropriation activities are curtailed,” he said.
He also noted that MTEN, which met yesterday, highlighted a petrol station recording fuel sales far exceeding others across the country, despite a relatively small surrounding population.
In addition, the government is exploring a different subsidy targeting mechanism for the fisheries sector, with further discussions to be held with the Malaysian Fisheries Development Authority (LKIM).
“For the fishing sector, for instance, MTEN has discussed and the Minister of Agriculture and Food Security is reviewing a slightly different mechanism that may be implemented, subject to a series of discussions including with LKIM.
“This will be reported and discussed in greater detail at next week’s MTEN meeting once all information has been successfully obtained,” Fahmi said. – April 15, 2026