THE federal government has yet to decide on the mechanism to implement the new targeted petrol subsidy as it awaits tenders for the project.

Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen said the Finance Ministry has called for a tender for interested parties to submit proposals on the mechanism.

“The government is still studying and considering proposals for the mechanism. Until now, it has yet to be finalised,” he told Dewan Rakyat during question time this morning.

Chong was answering a question from Salim Sharif (BN-Jempol), who wanted to know how effective the new targeted fuel subsidy mechanism would be in addressing cost of living concerns.

He also asked how rural folk in remote areas, where petrol stations are few and far between, would benefit from the targeted subsidy.

In his supplementary question, Salim also asked about the criteria for people to enjoy the subsidy, and whether those who have multiple vehicles were eligible.

Chong said the mechanism will consider both urban and rural consumers, as well as the concerns raised by Salim.

Under 2019 Budget, the government set aside RM2 billion to fund petrol subsidies on a targeted basis for vehicle owners with cars of 1,500cc engine capacity and below, and motorcycles of 125cc engine capacity.

The 30 sen monthly subsidy is only limited to 100 litres a month for cars, and 40 litres for motorcycles.

The government estimates that four million car drivers and 2.6 million motorcyclists will benefit from the targeted subsidy, which Putrajaya plans to implement in June.

It will narrow the base of those who can benefit as the current subsidy is enjoyed by all consumers in the country, regardless of their income and nationality.

Meanwhile, Noor Azmi Ghazali (PH-Bagan Serai) also remarked that there are many rich people who owned vehicles with lower engine capacities.

He asked Chong how will the government differentiate between the wealthy who owned such vehicles from the poor who genuinely needs the subsidy.

Chong said people who own multiple cars will not qualify.

“A person will qualify if he or she owns only one car. Those with two cars won’t qualify.

“For rural folks who drive larger vehicles like (the Toyota pickup) Hilux, we may be able to consider that as a necessity for them, even though the engine capacity is higher.

“As long as they belong to the B40 group, they will qualify.” – March 13, 2019.