BUDI95: E-HAILING QUOTA RAISED TO 800 LITRES, AIRPORT TAXIS NOW ELIGIBLE FOR SUBSIDY

KUALA LUMPUR, Nov 4 (Bernama) -- The government has agreed to raise the eligibility ceiling under the BUDI MADANI RON95 (BUDI95) programme for qualified e-hailing drivers to 800 litres per month, subject to prescribed travel conditions.

Prime Minister Datuk Seri Anwar Ibrahim said the government decided on this after reviewing appeals from e-hailing drivers based on their actual fuel usage.

He said that for last October, the government had provided an additional quota for active e-hailing drivers by increasing the ceiling from 300 to 600 litres per month, benefiting 58,000 drivers.

“At the same time, the government has also agreed for airport taxis to be included among vehicles eligible for subsidised RON95 under the Subsidised Petrol Control Scheme (SKPS),” he said during the Ministers’ Question Time session in the Dewan Rakyat today.

Anwar was replying to a question from Syerleena Abdul Rashid (PH-Bukit Bendera) on the progress of the first month of the targeted RON95 subsidy programme’s implementation and the measures taken by the government to address issues raised, particularly concerning airport taxi drivers, e-hailing drivers and riverboat users regarding their eligibility under BUDI95.

The Prime Minister said that in October, 13.1 million Malaysians used subsidised RON95, with an expenditure of RM2.6 billion involving about RM800 million in government subsidies.

Anwar said the average amount of RON95 used by BUDI95 recipients that month was 98 litres, equivalent to 33 per cent of the set monthly quota of 300 litres.

“Only less than 0.7 per cent of BUDI95 recipients fully utilised their monthly quota before the end of October,” he said.

He added that as of Oct 31, nearly 24,000 registered boat users without driving licences had been approved to receive BUDI95.

Answering a supplementary question from Syerleena on why the government decided to implement BUDI95, which benefits all Malaysian citizens, including the T15 group, Anwar said it was related to the implementation mechanism.

“When we want to define the T15 group, if we set the target at RM13,000 a month, then RM20,000 a month, it would still burden the upper-middle class. We could raise it to around RM50,000 a month, but that group is very small.

“From the enforcement standpoint, the cost of enforcement would be high. So, for now, our view is to proceed with the current implementation first, and if there’s a need in the future when the system becomes more robust, we can introduce refinements, particularly for those who are genuinely high-income earners or own truly luxury vehicles,” he said.

Responding to a question from Datuk Awang Hashim (PN-Pendang) on the impact of BUDI95 implementation amid external pressures such as tariffs imposed by the United States on Malaysian goods, which indirectly increase transportation and logistics costs, Anwar said the government is monitoring the situation.

“Although tariffs have been reduced, with many items, including semiconductors and palm oil, granted exemptions, we are still monitoring the cost impact. If costs rise, the government will review certain policies to ensure the people are not burdened,” he said.

Malaysia has signed the Agreement on Reciprocal Trade with the United States, which saw the average tariff rate reduced from 25 to 19 per cent, along with broader market access for the country’s key exports.

-- BERNAMA