Refinements Underway For Mykad Based Ron 95 Petrol Subsidy System

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According to Finance Minister II Datuk Seri Amir Hamzah Azizan, plans are underway to base the RON 95 fuel subsidy mechanism on a two-tier pricing system with subsidised and non-subsidised prices.

How will this work? Amir said your MyKad will determine if you pay a subsidised petrol price later this year. The subsidised petrol will benefit more than 95% of the people.
Other mechanisms to channel the subsidy have been floated before, such as direct cash transfer and vehicle type discrimination. However, the MyKad solution seems like a better plan due to the widespread use of the IC.
Experts lauded the move to use the MyKad, citing it allows the government to monitor card usage and identify potential misuse.
The idea of using MyKad as the determiner was inspired by the mechanism used in distributing the Sumbangan Asas Rahmah (Sara) assistance programme. Just by using the MyKad, recipients can purchase goods at retail stores or supermarkets.
If we can use MyKad for 5.4 million recipients with 3,500 stores, it’s not that different and we could also use the same system for RON 95.
Finance Minister II Datuk Seri Amir Hamzah Azizan
Amir reiterated that the mechanism is still being refined. In other words, everyone still needs to wait for the official announcement/confirmation.
Previously, Prime Minister Datuk Seri Anwar Ibrahim announced the restructuring of the RON 95 petrol subsidy from blanket to targeted during the tabling of Budget 2025.
Anwar said the country spends RM20 billion a year in petrol subsidies to keep the price of RON 95 capped at RM2.05/litre. The targeted subsidies would save the government RM8 billion.
The targeted petrol subsidy initially excludes the top 15% earners aka the T15 in the country. However, Anwar has since walked back on the definition of T15, a label for those earning a household income of RM12,000 or RM13,000.





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