THE price of RON95 petrol will be floated under the government’s revised petrol subsidy scheme to target the needy.

Only eligible recipients from the lower income group will receive subsidies of between RM48 and RM120 quarterly, depending on the type of vehicle they own.

Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail announced the revised structure today, saying this would take effect early next year, and will only be applicable to Peninsular Malaysia.

Sabah and Sarawak will not be affected by the new scheme, and RON95 price will be pegged at RM2.08 per litre, he said.

Currently, only the higher grade fuel RON97 is floated and prices are announced weekly every Friday.

RON95 and diesel are capped at RM2.08 per litre and RM2.18 per litre.

Saifuddin said the government will ensure the new pump price of RON95 will not be too burdensome for the people.

“We will do so in stages and not all at once.”

He also said the government has yet to decide if pump prices would be announced weekly or monthly, once the subsidy programme begins.

“We are still discussing the float period as this is under the Finance Ministry,” Saifuddin said.

Come January, eligible car owners will receive RM30 per month while motorcycle owners will receive RM12 a month, Saifuddin told a press conference in Putrajaya.

The subsidy will be deposited into their bank accounts.

Those eligible must already be recipients of the government’s cash aid programme, Household Living Aid (Bantuan Sara Hidup).

These subsidies will cost the government RM65.4 million a month and will benefit 2.9 million people, Saifuddin said.

For those eligible recipients with cars, the subsidy will be given to those with 1600cc engines and below.

Those with cars more than 10 years old and with engines larger than 1600cc are also eligible.

For motorcycles, those with engines of 150cc and below will qualify, as will those who own older motorcycles of seven years and above with engines of more than 150cc.

Saifuddin said people can begin checking their eligibility for the fuel subsidy starting October 15 at the ministry’s website.

The government in the meantime is fine tuning the database of subsidy recipients based on information on the BSH programme and with data from the Road Transport Department. 

He also said Putrajaya hoped to extend fuel subsidies to the middle class or M40 group in view of higher earnings by the government once the RON95 float begins.

The Pakatan Harapan government since late last year has been preparing to implement a targeted fuel subsidy mechanism, one of the items in its election manifesto to avoid wastage and ensure that the needy benefit. – October 7, 2019.