KUALA LUMPUR: The government is considering two-tiered pricing mechanism to rationalise RON95 petrol subsidies by introducing databases linked to MyKad and a combination of e-wallets or specific debit cards.
Treasury secretary-general Datuk Johan Mahmood Merican said these tools are intended to better direct subsidies to lower-income Malaysians and reduce the leakage to high-income individuals and non-citizens.
"It would be not unlike how the government implemented diesel, where the pump price was increased but logistics companies continued to use a fleet card and then being able to then buy diesel at the current subsidised price.
"So for individuals, the mechanism could be using the MyKad link back to a database as well as a combination of an e-wallet or a specific form of debit card," he said at Bank Negara Malaysia's post-2025 Budget dialogue here today.
According to Johan, the current blanket subsidies are benefiting groups they were not intended for. They include non-Malaysians, wealthy individuals and businesses.
These groups, he said while representing only about 15 per cent of the total consumers, are reportedly utilising 40 per cent of the petrol subsidies.
"So it's important that we create a mechanism that reduces the leakage to those groups, whilst the government remains committed to ensure that everyday rakyat Malaysians continue to benefit from subsidies.
"I think that's the main commitment. The details obviously continue to be worked on and need to be finalised," he added.
Last Friday, Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, announced that targeted subsidies for RON95 petrol would be implemented by mid-2025, but assured that 85 per cent of the population would continue to receive the subsidies.
Anwar noted that the government had subsidised RON95 to the tune of RM20 billion through 2023.