Government Open to Revising Budi Diesel Quotas Based on Actual Fuel Usage Data
KUCHING: The federal government has reiterated its willingness to review and refine the Budi Madani Diesel (Budi Diesel) programme, including the possibility of increasing fuel quotas, provided there is sufficient evidence from actual usage data to justify such adjustments.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the government’s approach to targeted subsidy programmes is guided by real consumption patterns rather than assumptions, ensuring that policy decisions remain evidence-based and responsive to genuine needs.
Speaking after a media briefing on the implementation of targeted diesel subsidy reforms, Amir Hamzah stressed that authorities would first allow the system to operate fully before assessing whether any modifications are necessary.
According to him, data-driven evaluations are essential to determine whether existing quotas are adequate for the majority of beneficiaries and whether specific groups require additional allocations.
“When new subsidy mechanisms are introduced, concerns about quota levels are common. However, decisions must be supported by actual usage patterns rather than projections alone,” he said.
The minister explained that previous subsidy programmes had demonstrated the effectiveness of using consumption data as the primary basis for policy refinement.
He cited the government’s targeted subsidy scheme for the e-hailing sector as an example, noting that operators initially raised concerns that the fuel quotas provided were insufficient.
Following a detailed review of consumption records supplied by e-hailing companies, the government introduced differentiated quota categories to better reflect varying levels of fuel usage among drivers.
“As a result, e-hailing drivers today benefit from quota structures of 600 litres and 800 litres, depending on their operational needs. These adjustments were made after examining actual data,” he said.
Amir Hamzah indicated that a similar approach could be applied to the Budi Diesel programme should future data reveal that certain users consistently require higher allocations.
He also pointed to findings from previous targeted fuel subsidy initiatives, where concerns were raised regarding a monthly quota of 200 litres.
However, data collected between January and May this year showed that only 0.76 per cent of users exceeded the 200-litre threshold, suggesting that the existing allocation was sufficient for the overwhelming majority of beneficiaries.
The minister said such findings demonstrate the importance of allowing programmes to operate long enough to generate reliable usage information before making major policy changes.
By relying on verified data, the government can ensure that subsidy resources are distributed more effectively while minimising leakages and inefficiencies.
Amir Hamzah emphasised that the broader objective of subsidy reforms is to improve fiscal sustainability, reduce misuse and ensure that assistance reaches those who genuinely require support.
He added that the Ministry of Finance remains committed to monitoring the implementation of Budi Diesel closely and identifying any shortcomings that may emerge during its rollout.
Should data reveal gaps in the current system, the government would not hesitate to consider adjustments aimed at improving fairness and effectiveness.
“Our approach is straightforward. We will monitor the results, analyse the data and make decisions based on facts. If improvements are needed, the government is prepared to review the programme accordingly,” he said.
The Budi Diesel initiative forms part of Malaysia’s wider subsidy rationalisation efforts, which seek to balance public assistance with prudent fiscal management while ensuring targeted support reaches eligible recipients in a sustainable manner.
