Govt postpones new RON95 Petrol Subsidy Program

The new targeted Petrol Subsidy Program (PSP) which was supposed to start on 1st January 2020 has been postponed until further notice. The announcement was made by the Ministry of Domestic Trade and Consumer Affairs.

As shared on their Facebook page, Domestic Trade and Consumer Affairs Minister, Datuk Seri Saifuddin Nasution bin Ismail said the postponement was decided during the 18th December Cabinet Meeting. As a result, all Malaysians will continue to enjoy the current RON95 pricing which is capped at RM2.08/litre.

According to the Ministry, the government has allocated RM2.4 billion from Budget 2020 to offer targetted RON95 petrol subsidies for eligible Malaysians. It is expected that 8 million Malaysians from the B40 and M40 group will benefit from the program. The official statement has mentioned that the delay was to allow more time to provide further clarification to the public on the subsidy program and to handle registration of eligible recipients from the M40 income bracket.

Under the PSP for B40, you are eligible to enjoy the RON95 subsidy if you own the following vehicles:

  • Car with 1,600cc engine and below
  • Car with engine above 1,600cc and more than 10 years old
  • Motorcycle with 150cc engine and below
  • Motorcycle with engine above 150cc and more than 7 years old

If you’re eligible and only own a motorcycle, you’re only eligible to receive RM12/month. For those who own a car, you’ll receive a maximum of RM30/month even if you own an additional motorcycle.

For those Malaysians under the M40 group, the government will introduce a petrol subsidy card (Kad95) and it was originally targetted to be rolled out sometime in March 2020. With the program, the government aims to adopt a floating mechanism for RON95 petrol and the targetted subsidy will be given only to those that deserve it. It was previously suggested that the RON95 retail pricing will be increased on a weekly basis to minimise the impact on the prices of goods.

The PSP will only be implemented in West Malaysia, while Sabah and Sarawak will continue to offer RON95 at a fixed price of RM2.08/litre.

[ SOURCE ]

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Alexander Wong