It replaces the previous blanket subsidy that was open to anybody at the pump and limits citizens to 300 litres of discount petrol per month
Under the previous blanket system, any vehicle arriving at a pump could access the subsidised price, regardless of the driver’s identity. That scheme cost nearly 20 billion ringgit (US$4.7 billion) annually, or about 8 per cent of total government spending. Much of that was used on petrol priced at just 2.05 ringgit (US$0.49) per litre.
The new scheme allows Malaysians to purchase subsidised petrol at 1.99 ringgit per litre, but only if they hold a valid national identity card, known as MyKad, and a current driving licence – a requirement designed to ensure that only genuine citizens benefit.
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Across Kuala Lumpur, motorists swiped their ID cards at petrol pumps as attendants helped familiarise them with the new system.
