E-wallets, MyKad being looked at for RON95 subsidy

As announced in Budget 2025 by prime minister Datuk Seri Anwar Ibrahim, targeted subsidy for RON 95 petrol will come into place from mid-2025. The two big things left to be determined are exactly who will be excluded and the mechanism.

A two-tier price at the pump or selection defined by vehicle type have been among the solutions ventured. Meanwhile, the government says it is looking at the use of MyKad (identity card, or IC) as well as e-wallets as a means to carry out targeted subsidies.

This was indicated by second finance minister Datuk Seri Amir Hamzah Azizan, who said that these were among the basket of solutions that would help determine who is eligible to receive aid and who is not, The Star reports.

The use of e-wallets as a means of disbursement would mean a certain pre-determined amount is to be credited monthly, and that everyone would pay the market price at pumps. If adopted, the scheme would be similar to that used for diesel, although the payments for that are channeled into bank accounts. With RON 95 having a significantly larger user base, it’ll be interesting to see how this works out.

He reiterated that the RON95 subsidy rationalisation was necessary but will not affect 85% of Malaysians. He said that based on current data, it is estimated that over 40% of petrol usage is by foreigners, the commercial sector and smuggling.

“As the level of RON 95 petrol subsidy is around RM20 billion a year, if leakage to foreigners, the commercial sector and the rich can be solved, it’s bound to save up to RM8 billion a year,” he explained.

He added that the government is still determining the criteria for the T15 group, which will not be covered by subsidised fuel when the rationalisation programme begins. He said that the government will not just rely on data from the statistics department’s household income survey to determine eligibility. “We will take into account all views,” he explained.

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Learn more: RON95 Fuel Subsidy