E-wallets a likely channel for targetet RON95 petrol scheme

PETALING JAYA: Plans are being mooted for the use of MyKad and e-wallets when the RON95 petrol subsidy rationalisation exercise begins by the middle of next year, says the Finance Minister II.

Datuk Seri Amir Hamzah Azizan said this would help determine who is eligible to receive aid and who is not.

“The savings from this can be used to strengthen the economy by reducing debt and ploughing these funds into hospitals, schools and others,” he said during Minister’s Question Time in the Dewan Rakyat yesterday.

Amir Hamzah said the RON95 subsidy rationalisation will not affect 85% of Malaysians and would involve tiered pricing such as that in diesel and electricity rates.

“For electricity users with high usage, they are subject to higher tariffs. As for diesel subsidies, the unsubsidised price at petrol pumps is RM2.95 per litre but vehicles in the logistics sector eligible for fleet cards can buy diesel at a subsidised price of RM2.15 per litre.

“The RON95 rationalisation has to be done due to the huge difference in price that has led to leakages in petrol subsidies, where the subsidies are enjoyed by those who are not eligible,” he added.

Amir Hamzah said current data suggests that petrol consumption by non-citizens, the commercial sector and smuggling activities accounts for about 40% of total petrol usage.

“Considering that the RON95 petrol subsidy amounts to around RM20bil annually, addressing the leakage to foreign nationals, the commercial sector and affluent individuals could result in savings of up to RM8bil each year,” he told Aminolhuda Hassan (PH-Sri Gading).

The MP had asked about the government’s strategies to tackle petrol subsidy leakage to non-citizens and the T15 group while ensuring that the B40 group can access targeted subsidies for RON95 petrol in the future.

Amir Hamzah said the government is still determining the criteria for the T15 group.

He added the government will not solely rely on the data from the Statistics Department’s Household Income Survey to determine eligibility.“We will take into account all views,” he said.