SHAH ALAM, Dec 10 — The federal government will take firm action against individuals or oil companies found misusing the targeted fuel subsidy under the BUDI Madani RON95 (BUDI95) programme.
Finance Minister Datuk Seri Anwar Ibrahim said the government has clear enforcement mechanisms to prevent leakages and protect the integrity of the subsidy system.
“If any party abuses the subsidy, the government will take action such as suspending an individual’s eligibility or halting subsidy payments to the oil company concerned.
“This includes cases involving discrepancies in fuel quantity or quality, or other suspicious transactions,” he said in a written parliamentary reply dated yesterday.
He was responding to a question from Senator Datuk Rosni Sohar about punishments for BUDI95 misusers, and whether the government will consider revoking their rights to the subsidy.
Anwar stressed that misuse won’t be tolerated, adding that several issues reported previously, such as network disruptions in recorded sales, have been thoroughly investigated and resolved.
“Enforcement efforts will continue to be intensified, especially at petrol stations near the country’s borders, where risks of misuse and cross-border leakages are higher.”
He also said efforts are being made to enhance cooperation with government agencies, including the Malaysian Communications and Multimedia Commission (MCMC), to improve network coverage in rural regions, and the Domestic Trade and Cost of Living Ministry (KPDN) to strengthen on-ground enforcement.
“Our priority is to ensure subsidies reach only those who are eligible, and that no loophole exists for any party to manipulate the system.”
Anwar urged people to report suspicious behaviour or potential abuse through official complaint channels to ensure immediate enforcement action.
Under BUDI95, Malaysians with a valid MyKad and active driving licence are eligible to purchase RON95 petrol at RM1.99 per litre, capped at 300 litres a month, with subsidies reimbursed directly to fuel companies.
