Restored Budi95 quota to provide relief, but enforcement must continue, says consumer groups

KUALA LUMPUR: Returning the monthly Budi Madani RON95 (Budi95) subsidised petrol allocation to 300 litres will bring comfort to Malaysians, but watchdog groups highlighted the need for persistent enforcement to curb leaks and misuse, according to consumer associations. The Federation of Malaysian Consumers Associations (Fomca) explained that the provision would be especially helpful for users with higher fuel consumption, notably those driving diesel-powered vehicles like trucks and jeeps.

They rejected the notion that these vehicle owners were always well-off, emphasizing that in many rural and semi-rural areas, these were work vehicles utilized by farmers, small merchants, and contractors, where fuel represented a critical part of earnings. In response to Prime Minister Anwar Ibrahim's declaration during his National Day Eve broadcast that the monthly Budi95 quota would be reinstated, the CEO of Fomca, Dr Saravanan Thambirajah, stressed the necessity of maintaining stringent checks to keep the subsidised fuel accessible only to genuine Malaysian users.

He warned that a larger quota would intensify the challenge of enforcement. Dr Saravanan stressed that a meticulously designed targeted subsidy system would enable genuine consumers to profit without causing a surge in government spending. He also suggested that when people are compelled to make sacrifices during tough times, they should witness that temporary policies are reassessed and revised as circumstances improve.

The Malaysia Consumers Movement (MCM) agreed with Dr Saravanan, stating that the restored quotas would be a significant relief to many Malaysians, and they believed the initial reduction in the RON95 quota was an error. They supported the reinstatement of the diesel subsidy quota to 400 litres, calling it a necessary and welcome adjustment.

They also advocated for future subsidy policies to be more closely aligned with the real needs and usage patterns of the population.