Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail announced a petrol subsidy programme for the lower-income group today in a bid to reduce the cost of living for the community.
Some 2.9 million people are qualified to receive the subsidy which will be implemented on Jan 1, 2020, and is capped at RM30 per month for cars and RM12 per month for motorcycles.
Those eligible must already be recipients of the government’s cash aid programme, Household Living Aid (Bantuan Sara Hidup) and own vehicles in the following categories:
- Cars with 1,600cc engines
- Cars 10 years and older with 1,600cc engines and above
- Motorcycles with 150cc engines and below
- Motorcycles seven years and older with 150cc engines and above
Saifuddin said the subsidy would be directly credited to recipients’ bank accounts every four months.
The price of RON95 petrol will then be floated in the peninsula with adjustments to be made in stages.
Those in Sabah, Sarawak and Labuan will not be eligible for the subsidy as petrol prices there will be capped at RM2.08.
Currently, only the higher-grade fuel RON97 is floated and prices are announced weekly every Friday.
RON95 and diesel are capped at RM2.08 and RM2.18 per litre, respectively.
Saifuddin said the government will ensure the new pump price of RON95 will not be too burdensome for the people.
“We will do so in stages and not all at once.”
These subsidies will cost the government RM65.4 million a month, Saifuddin said.
The Pakatan Harapan government since late last year has been preparing to implement a targeted fuel subsidy mechanism, one of the items in its election manifesto to avoid wastage and ensure that the needy benefit.