Amir said such a proposal would raise the risk of leakage and would not strengthen the government’s fiscal position.

“The government will continue to closely monitor usage patterns and trends, and re-evaluate the (BUDI95) limit from time to time.

“This is to ensure that the targeted RON95 subsidy policy is continuously refined and strengthened for the benefit of the people and the nation’s fiscal sustainability,” he said during the Dewan Negara’s oral question-and-answer session.

He was responding to Senator Abdul Halim Suleiman who asked about the rationale for implementing BUDI95 at RM1.99 for the first 300 litres and a floating price of RM2.60 for usage exceeding 300 litres, versus setting tiered prices such as RM2.10 or RM2.30.

Amir said since the implementation of BUDI95, the recorded average petrol consumption for private users had been only 98 litres per month – 33% of the monthly allocated limit of 300 litres.

It would be difficult to change limits at the individual level as 14 million people are under the BUDI95 programme, he said.

“If I have to set limits like this person 301 litres, that person 350 litres – the finance ministry’s work will never end,” he said.

He said the government would look at opportunities to improve and reconsider proposals once there is sufficient data, a year after the implementation of BUDI95.