Who benefits most from BUDI95? Government data points to B40 and M40, says Amir Hamzah

Finance Minister II Datuk Seri Amir Hamzah Azizan stated that the B40 and M40 income groups derive the most benefits from the BUDI Madani RON95 (BUDI95) initiative, as opposed to the T20 group. This conclusion is derived from current consumption data, which highlights patterns in the usage of subsidized petrol across different income groups.

The government now possesses comprehensive records of every single purchase made using the subsidy due to the MyKad integration at petrol stations, allowing for a precise analysis of the impact of fuel subsidies.

Amir Hamzah pointed out that this revelation contradicts a prevailing belief that the T20 group consumes more fuel than the B40 and M40 groups. This misconception stems from the assumption that the T20 group owns larger vehicles with higher engine capacities. Instead, the government believes that daily travel distance is a significant determinant of petrol consumption, especially for individuals in lower-income groups residing far from their workplaces.

For instance, a person belonging to the B40 group working in Kuala Lumpur would likely reside in areas such as Rawang or Seremban, a considerable distance from their workplace. Consequently, their commutes would involve substantial fuel consumption. The Finance Minister emphasized that the government is currently refining the figures based on this data and anticipates releasing further details within the next two months.

Approximately 16 million Malaysians have already begun reaping the rewards of the BUDI95 initiative, which was introduced on September 30. This program sets the price of RON95 petrol at RM1.99 per liter, down from the previous price of RM2.05 per liter, with each individual entitled to a monthly allocation of up to 300 liters. The BUDI95 rollout has been implemented in stages since September 27, initially encompassing members of the Malaysian Armed Forces and the Royal Malaysia Police, followed by recipients of the Sumbangan Tunai Rahmah (STR) cash assistance, and ultimately extending to all Malaysian citizens.