Fuel subsidies have long strained the budget, with nearly 20 billion ringgit (US$4.7 billion) spent annually in recent years – about 8 per cent of total expenditure.
The country’s citizens will enjoy even cheaper petrol at just 1.99 ringgit per litre, while foreigners will have to pay a floating rate of around 2.60 ringgit per litre for the same fuel.
“All citizens, regardless of income level, who have an active driving licence will automatically be eligible to enjoy the benefits of BUDI95. This is a privilege only for Malaysians,” said Anwar, referring to the name of the scheme.
“Some may criticise, why will the ultra-wealthy also get it? This is recognition for the people of Malaysia.”
He added that the savings would be redistributed as cash handouts and other forms of help to the public, as well as used to fund the country’s health and education programmes and basic infrastructure.
