THE middle class or M40 group will be able to receive a fuel subsidy in March next year through a special fuel card, Finance Minister Lim Guan Eng said today.

“We are studying this matter and once the mechanism is ready we will announce it,” he said after attending the International Directors Summit 2019 at the Shangri-La Hotel in Kuala Lumpur.

The mechanism, Kad95, will be introduced in stages in the first quarter of 2020. Lim did not provide further details on the mechanism, saying it is still being studied.

The M40 are those who are not recipients of the government’s cash aid programme, Bantuan Sara Hidup (BSH).

With Kad95, those driving cars will be able to receive a subsidy on RON95 fuel of 30 sen per litre up to 100 litres per month.

Motorcyclists will receive a subsidy of 30 sen per litre up to 40 litres a month.

The targeted fuel subsidy for the B40 group would begin in January, with the first payment made in April 2020 for the first four months direct to recipients’ bank accounts.

Eligible B40 recipients must already be receiving the BSH. They will get a petrol subsidy of RM30 a month if they own a car, or RM12 a month if they own a motorcycle.

The eligibility criteria for M40 subsidy recipients will be the same as that for the B40.

Cars must have an engine capacity not exceeding 1600cc, or be more than 10 years old with an engine capacity of more than 1600cc.

Motorcycles must not exceed 150cc, and those with a higher capacity must be more than seven years old.

RM2.2 billion has been allocated under Budget 2020 for the fuel subsidy programme and will benefit about 8 million motorists.

He said the government would review the subsidy if world oil prices become higher. – October 15, 2019.