Malaysia Weighs Expanding Diesel Subsidy Under BUDI95 as Costs Rise to RM6 Billion
SUNGAI PETANI: The government is conducting a comprehensive review of proposals to expand diesel subsidies to a broader group of beneficiaries, including farmers and fishermen, while factoring in rising subsidy costs that have reached approximately RM6 billion.
Finance Minister’s political secretary Muhammad Kamil Abdul Munim said authorities are actively considering feedback from affected groups, particularly those not currently covered under existing schemes but still impacted by rising diesel prices.
He noted that among the options being studied are targeted subsidy models similar to the BUDI Madani RON95 (BUDI95) programme, as well as extending fleet card usage to additional groups that were previously excluded, including farmers.
“We are reviewing all aspects, including feedback from farmers, some of whom are not part of the current scheme but are nonetheless affected.
“The government is examining this comprehensively to ensure that no group is left behind,” he told reporters after attending an Aidilfitri open house in Gurun.
He added that the smooth implementation of BUDI95, which recorded minimal issues, serves as a key reference in designing a new framework for diesel subsidy expansion, with a focus on efficiency, simplicity and effective delivery.
Rising Costs Pose Fiscal Challenge
At the same time, the government is facing mounting fiscal pressure as expenditure to cushion global fuel price increases has surged significantly from around RM700 million to RM6 billion.
Muhammad Kamil said the increase highlights the government’s strong commitment to shielding the public from rising energy costs, but stressed that fiscal sustainability must also be carefully assessed.
“While we remain committed to helping the people, we must also consider our financial capacity,” he said.
He added that previous measures such as subsidy rationalisation, expenditure control and stricter enforcement to curb leakages have enabled Malaysia to manage the impact of rising global oil prices thus far.
However, he cautioned that if costs continue to rise, adjustments to current policies may be necessary to align with evolving economic conditions.
“If costs keep rising, we cannot remain in the current position. Adjustments will be needed to reflect current economic realities,” he said.
Langkawi Ferry Issues Under Transport Ministry
On disruptions affecting ferry services to Langkawi, he said the matter falls under the jurisdiction of the Ministry of Transport Malaysia, which will assess potential improvements and their implications for the island’s tourism sector.
Overall, the government is taking a measured approach in expanding diesel subsidies, balancing the need to support affected groups while maintaining fiscal discipline and long-term sustainability.
-wilayah.com.my
