Budi95 success: only 0.6% max out RON95 quota, govt eyes border smuggling

Malaysia's Budi MADANI RON95 (Budi95) targeted subsidy program is showing strong signs of success, with new data from the Finance Ministry revealing that the vast majority of recipients are using the aid well within the set limits.

However, the government has also flagged "irregular usage patterns" near border areas, prompting tighter monitoring to combat potential misappropriation.

Budi95 October Data: At a Glance

New data from the Finance Ministry provides a clear picture of the program's performance:

• Max-Out Rate: Only 0.6% of recipients used their full 300-litre quota.

• Average Use: Most recipients used only 98 litres.

• Total Approved: 16.55 million Malaysians (exceeding the 15 million projection).

• Total Savings: RM800 million for 13.1 million users in October.

• Subsidised Price: RM1.99 per litre (compared to the unsubsidised RM2.60 per litre).

Program Success: 300L Quota Proves Sufficient

The most significant finding from the October data is that barely 0.6% of Budi95 recipients hit their full 300-litre monthly quota. This figure counters early criticism that the monthly limit would be insufficient for most Malaysians.

With the average recipient using only 98 litres, the data validates the government's quota-based approach.

Finance Minister II Datuk Seri Amir Hamzah Azizan stated that these results demonstrate the targeted system is working as intended, ensuring the subsidy reaches the right people without a complicated process.

New Challenge: Govt Flags Potential Border Smuggling

While the program is an overall success, the Finance Ministry has detected irregularities that suggest potential abuse. The government is now tightening enforcement and monitoring to address two specific patterns:

1. Unusual Speed: A small number of users are exhausting their monthly quota at an unusually fast pace.

2. Unusual Location: There is a pattern of repeated purchases concentrated in areas near the nation's borders.

These patterns raise concerns about the misappropriation or resale of subsidised petrol to ineligible parties, such as for industrial use or smuggling. The government has issued a stern warning that it "will not compromise on any form of misappropriation."

Program Enhancements: Support for E-Hailing and Other Sectors

The Budi95 program continues to be refined. To better support the gig economy, the government has doubled the monthly quota for full-time e-hailing drivers to 600 litres as of October 13, a move benefiting nearly 58,000 drivers.

The program also provides subsidies for over 23,000 fishermen and boat operators in Sabah and Sarawak.

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