THE new fuel subsidy scheme to begin next year is only for one car per individual in the B40 group, as the government has found that some low-income folk own up to six vehicles, said Dr Mahathir Mohamad today.

Defending Putrajaya’s decision on the RM30 monthly fuel subsidy, the prime minister said there are those in the B40 category who do not deserve such aid.

“We found, after studying (the data), that there are some in the B40 group who own up to six cars, and they are enjoying more of the subsidy.

“So, we decided that we will pay the subsidy for only one car. We are not giving any fuel subsidy to the rich, either,” he told reporters at the Parliament lobby.

The new scheme will take effect on January 2, he added.

Stressing that it will be based on one car per B40 individual, Dr Mahathir said previous subsidy schemes were wasteful, benefiting even the rich.

“Those driving a Rolls-Royce also enjoyed the subsidy. We cannot support this.

“So now, cars below 1600cc will get a subsidy, for those in the B40 group, and it’ll be for one car only. This is to ensure the aid is received by those who need it, not those with two or three Rolls-Royce cars.”

Under the new scheme, announced yesterday, the price of RON95 fuel will be determined by a float system, as what is done with the higher-grade RON97 presently. However, this will not be applied to Sabah and Sarawak, with RON95 to be capped at RM2.08 per litre in the two states.

Those eligible for the subsidy – RM30 a month for car owners, and RM12 for motorcyclists – must be from the B40 category and already receiving the government’s Cost of Living Aid.

The payout will be credited into the bank accounts of owners of cars with engines of 1600cc and below, as well as vehicles more than 10 years old with bigger engines.

Owners of motorcycles with engines of 150cc and below are eligible, as well as those with bikes more than seven years old with bigger engines. – October 8, 2019.

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