Malaysian government finds lower income groups benefit most from fuel subsidy

Second Finance Minister Amir Hamzah Azizan stated that low and middle income groups in Malaysia receive the largest benefits from the BUDI95 initiative.

The government is currently refining usage data to provide a clearer explanation of the program's distribution within the next two months. Amir Hamzah Azizan noted that current records show lower income earners use more subsidized fuel than the public might assume.

While some believe high income earners consume more fuel due to larger vehicles, the minister explained that long daily commutes for low income workers also drive high consumption. The government tracks these purchases because individuals must use their national identity cards at gas stations to access the subsidy. The BUDI95 initiative began on September 30 and currently provides 16 million Malaysians with a subsidized price of RM1.99 per liter for RON95 petrol, down from RM2.05 per liter.

Each individual is eligible for up to 300 liters of fuel per month. The government plans to release further details soon to correct public perceptions regarding how the subsidy benefits different income brackets.