26th August 2025 - 2 min read
The government will implement a capped quota system when the RON95 fuel subsidy rationalisation takes effect, Finance Minister II Datuk Seri Amir Hamzah Azizan has announced.
The quota system is designed to differentiate between ordinary users and individuals who depend on fuel for their daily work, such as p-hailing and e-hailing drivers. According to Amir Hamzah, higher allocations will be provided to these groups to reflect their greater reliance on fuel.
Amir Hamzah explained in Parliament that a quota is necessary to ensure subsidies are used fairly. He said the government does not want individuals to purchase subsidised fuel on behalf of others.
“Ordinary users will have a set quota, but for p-hailing and e-hailing drivers, the quota will be higher because this is their primary task. We will make that distinction,” he said.
The finance ministry is finalising the details of the rationalised subsidy programme, including eligibility criteria and implementation methods. Amir Hamzah said the framework is in its final phase of refinement, and full details are expected to be announced by the end of September.
Eligibility for the subsidy will be determined by several factors, including household income levels and the type of vehicle owned. The government intends to distinguish between mass-market and luxury vehicles when deciding who qualifies.
Amir Hamzah emphasised that the central objective of the subsidy rationalisation is to ensure that the majority of Malaysians continue to receive support, while preventing leakages and misuse.
To ensure smooth implementation, the government has tested several mechanisms for distributing the fuel subsidy. These include the use of MyKad, e-wallet platforms, and applications provided by petrol retailers.
Amir Hamzah said the testing phase is aimed at identifying a system that is efficient and user-friendly, ensuring that the rationalisation does not create unnecessary complications for the public.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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