One sen per week fuel price increase when PSP starts next year is just a suggestion, not finalised – Saifuddin

One sen per week fuel price increase when PSP starts next year is just a suggestion, not finalised – Saifuddin


It was reported yesterday that RON 95 petrol prices will move up by one sen per week till it reaches the market price, once the petrol subsidy programme (PSP) starts next year. Harian Metro quoted deputy minister of domestic trade and consumer affairs Chong Chieng Jen saying that as he answered a question in parliament.

At the Kempen Beli Barangan Malaysia event by Petronas this morning, KPDNHEP minister Datuk Seri Saifuddin Nasution Ismail clarified that the “one sen per week increase” is not finalised and has not been green-lighted by the cabinet.

“About the implementation of PSP, the annoucement on October 7 was agreed by the cabinet, hence the announcement. From then till the start of implementation in January 2020, the ministry will continue to do preperations: to engage various parties to come up with ideas to ensure the smoothness of implementation,” he said.

“In these many discussions, there’s the setting of price when implementation starts. We discuss many things, and one of it that has not been finalised was the answer given by the deputy minister yesterday. What’s the status? It’s not finalised yet,” Saifuddin added.

“Yesterday, my deputy answered a supplementary question, and he spoke about the suggestion of price increase (one sen per week). I want to say here that that’s not a certainty. That’s because the final pump price is determined by a few factors – APM (Automatic Price Mechanism), currency exchange (RM vs USD), price of crude oil at that time, MOPS (Mean of Platts Singapore) and so on,” he explained.

The KPDNHEP minister said that he will provide feedback to his colleagues in a cabinet meeting tomorrow, and announcements will be made when things are agreed upon by the cabinet. “I want to say again, that issue as reported by the media, it’s not finalised yet. Regarding PSP, it stands at what I announced on October 7. Details and periodic updates will only be given when the cabinet agrees.”

Confirmed details of the PSP scheme are as follows:

  • The subsidy will only be given to car/motorcycle owners, and is limited to one vehicle per recipient. If a person owns a car and a motorbike, then he/she will receive the higher subsidy, which is for the car. The car or motorcycle must be registered under the recipient’s name.
  • The subsidy rate will be capped at RM30 a month for car owners, and RM12 a month for motorcycle owners.
  • The government will reimburse the subsidy once every four months, so car owners will receive RM120 and motorcycle owners will receive RM48 every four months. The payment method will see cash being directly credited into the recipient’s registered bank account. The first payment is scheduled for April 2020.
  • Only those who are entitled for cost of living aid (BSH) assistance, with their names listed in the BSH database for receiving such allowances, will be able to receive the new petrol subsidy. All handicapped people will also be given the subsidy.
  • The household income of the recipient must not be more than RM4,000 per month.
  • To qualify, a recipient can only own a maximum of two cars and two motorcycles at any one time in his/her household. See the info-graphic panel above for a clearer picture of what vehicle combination qualifies and what doesn’t.
  • For cars, the pre-requisite is that the engine displacement must be:
    1,600 cc or below
    – or above 1,600 cc, but only for cars that are 10 years old and above
  • For motorcycles, the pre-requisite is that the engine displacement must be:
    150 cc and below
    – or above 150 cc, but only for motorcycles that are seven years old and above

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