PUTRAJAYA, Nov 7 — The B40 and M40 income groups derive greater benefits from the implementation of the BUDI Madani RON95 (BUDI95) initiative compared to the T20 group, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He saId this finding is based on current consumption data, which allows the government to identify patterns in the purchase of subsidised petrol across different income groups.
“In fact, I now have perfect data… because everyone who utilises the subsidy uses their IC (MyKad) at the petrol station, and we have a record of every single purchase made in the country.
“So, our current data shows that the distribution of fuel subsidies provides the most benefit to the M40 and B40 groups,” he said during a podcast featured on the ‘Duit Faiz’ TikTok account.
Amir Hamzah noted that this finding contradicts the common perception that the T20 group consumes more fuel than the B40 and M40 groups, a belief often attributed to the assumption that the T20 group owns more vehicles with larger engine capacities.
He added that daily travel distance is another factor influencing petrol consumption, particularly for individuals in lower-income groups who reside far from their workplaces.
“Let’s look at a hypothetical scenario. If I belong to the B40 group and work in KL (Kuala Lumpur), I wouldn’t be living in Kenny Hills or Taman Duta. I might live in Rawang or Seremban that’s quite a distance away. So, my travels will consume a significant amount of fuel,” he said.
He added that the government is currently refining the figures based on this data and is expected to provide further details within the next two months.
Amir Hamzah said this clarification is essential to correct public perception regarding consumption patterns and the distribution of benefits under the BUDI95 initiative across different income groups.
A total of 16 million Malaysians have begun to enjoy the benefits of the BUDI95 initiative, which was implemented on September 30.
The initiative sets the price of RON95 petrol at RM1.99 per litre down from the previous price of RM2.05 per litre with each individual entitled to a quota of up to 300 litres per month.
The rollout of BUDI95 has been conducted in stages since September 27, beginning with members of the Malaysian Armed Forces (MAF) and the Royal Malaysia Police (PDRM), followed by recipients of the Sumbangan Tunai Rahmah (STR) cash aid, before being extended to all Malaysians. — Bernama
Date: 7 November, 2026 1:25 pm
Source: Malay Mail
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