Targeted fuel subsidy to be announced in two weeks

Targeted fuel subsidy to be announced in two weeks

08/22/2019

The mechanism involved in the targeted fuel subsidy for RON 95 petrol will be announced in early September, according to domestic trade and consumer affairs (KPDNHEP) minister Datuk Seri Saifuddin Nasution Ismail. He said the announcement on the matter will be made once cabinet approves the scheme, the New Straits Times reports.

“Everything, including the implementation mechanism, will be revealed during the press conference which is expected to be held in less than two weeks, if everything goes according to schedule,” he said earlier this week.

The fuel subsidy was initially supposed to be announced in Q1 this year, but its implementation date kept being brought forward. The government has since come up with a new plan to ensure that only those eligible for the subsidy will get it.

During Budget 2019, finance minister Lim Guan Eng had said that the government planned to subsidise owners of vehicles and motorcycles with engine capacities below 1,500cc and 125cc respectively a subsidy rate of 30 sen per litre for RON 95 petrol. This would be capped at 100 litres per owner of a vehicle and 40 litres for those with motorcycles.

The new scheme will no longer utilise this method, and will instead switch to cash being directly given to lower income B40 households already enlisted for the cost of living aid (BSH) scheme, similar to that being done for the current BSH programme.

Currently, the government is subsiding RON 95 petrol for all users, capping the price of the fuel at RM2.08 a litre. It has been previously reported that the price cap on RON 95 petrol will be lifted once the targeted fuel subsidy scheme comes into effect.

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