Under the Budi95 scheme that was rolled out nationwide on September 27, eligible Malaysians pay 1.99 ringgit (42 US cents) per litre for RON95 petrol instead of the unsubsidised 2.60 ringgit.
The subsided amount of fuel is capped at 300 litres (79 gallons) a month per Malaysian. The scheme has recorded about 3 million transactions daily so far, benefiting more than 12 million Malaysians, according to the finance ministry.
Treasury Secretary General Johan Mahmood Merican told state-news agency Bernama that the 300-litre limit was designed to accommodate normal consumption levels, but early usage patterns pointed to possible irregularities, particularly in regions bordering Thailand.
“When analysed, those who had fully utilised their quota already included those filling up in border states,” Johan said.
“Out of those who have utilised the 300 litres, there were more than 80 individuals who, despite only holding a motorcycle license, had already finished their 300 litres quota – which implied that they were using their motorcycles [to travel] more than 500km (310 miles) every day [across the border] in these first two weeks of October.”
Fuel smuggling has long plagued Malaysia’s borders, particularly along the 130km stretch between the northern state of Kelantan and southern Thailand, where petrol subsidised by the Malaysian taxpayer can be resold at a minimum of a 30 per cent mark-up.