KUALA LUMPUR, Oct. 13 -- The Malaysian government had opted to use the Budi95 programme to plug leakages where Malaysia's RON95 petrol was being smuggled since it was relatively cheaper, rather than floating the RON95 petrol price and using cash transfers to Malaysians to offset the higher costs.

Treasury secretary-general Datuk Johan Mahmood Merican today explained some of the factors that were taken into account before Budi95 was rolled out, and why the government did not use the other option.

Under Budi95, Malaysians with a valid driving licence get to enjoy a subsidised price of RM1.99 per litre for RON95 petrol, while non-citizens pay the non-subsidised price which is currently at RM2.60 per litre.

Speaking at the Malaysian Econom...