Restore RON 95 monthly quota to 300 litres if oil prices ease, country’s fiscal position improves – PKR Youth

While the Budi Madani RON 95 (Budi95) petrol monthly quota remains temporarily capped at 200 litres since it was adjusted in April, PKR Youth has called on the government to increase it back to its previous level when the economic situation allows it.

The suggestion was made by PKR Youth chief Muhammad Kamil Abdul Munim, who proposed that the monthly Budi95 quota be restored to its 300-litre limit should the government’s fiscal position continue to improve, the New Straits Times reports.

“If global oil price pressures ease, the country’s fiscal position continues to strengthen and government revenue provides greater room, we propose that the Budi95 subsidy ceiling be reviewed and restored to at least 300 litres a month,” he said.

He said an additional allocation of up to 350 litres a month could also be considered for groups with greater operational and mobility needs, subject to clear eligibility criteria and data verification.

Restore RON 95 monthly quota to 300 litres if oil prices ease, country’s fiscal position improves – PKR Youth

Kamil said that the proposal did not mean subsidies should be provided without limits or that the government should abandon fiscal discipline. Instead, he said the subsidy mechanism should be made more responsive to changing economic conditions and the needs of the people.

Back in April, finance minister II Datuk Seri Amir Hamzah Azizan said that the decision to lower the Budi95 quota was based on data analysis and a comprehensive assessment of the implications. It was indicated that on average, the majority of users in Malaysia consume around 100 litres of RON 95 per month.

Last month, prime minister Datuk Seri Anwar Ibrahim reiterated that the quota cut was made after considering actual consumption patterns, while balancing fuel supply security with the need to maintain targeted assistance for the rakyat. He also said that government spending on petrol and diesel fuel subsidies could approach RM40 billion this year if current market prices for oil persist.