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Government May Use MyKad to Verify RON95 Subsidy Eligibility.

21-Oct-2024


Transport Minister Anthony Loke has proposed that Malaysians present their MyKad when purchasing subsidized RON95 petrol to ensure that only eligible citizens benefit, thereby preventing foreigners from accessing the cheaper fuel. 

According to Malaysiakini, the new targeted RON95 subsidy system will prioritize the B40 and M40 income groups and is expected to roll out by mid-2025. Higher-income Malaysians may face increased RON95 prices starting in mid-2025, helping the government save around RM8 billion in subsidies.



Prime Minister Anwar stated that the government currently allocates RM20 billion annually for blanket subsidies for RON95 petrol, which mainly benefit foreigners and the wealthiest 15% of Malaysians. 

This suggests that two pricing tiers will be introduced—one for eligible Malaysians and another for the top 15% earners and foreign nationals. However, as Transport Minister Loke mentioned, according to *The Edge*, "this is just a proposal, and further details will be revealed by the Finance Ministry in the coming months."

Loke explained that the use of MyKad at petrol stations would function similarly to using a BonusLink or credit card. 

“When you visit a petrol station, just like inserting a BonusLink or credit card, you only need to insert your MyKad to see the subsidized price,” he said. 

However, *Focus Malaysia* reported that X users are opposing targeted subsidies for RON95, arguing that linking fuel prices to identity cards or similar methods would overcomplicate the process. Instead, they suggested using vehicle license plates as an alternative indicator.
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