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fuel subsidy

  • Minister of Domestic Trade and Consumer Affairs announced that the proposal for petrol subsidy is ready.

  • The new subsidy plan hopes to help the B40 group.

  • The proposed subsidy will apply to owners of motorcycles below 125cc.

After more than a year deliberation, the Minister of Domestic Trade and Consumer Affairs announced that the proposal for petrol subsidy is ready.

If given the green light by the Cabinet, the government will employ a number of safeguards to ensure the that B40 group receives the subsidy. The measures proposed are in view of unreliable data which often plagues decision-making among government agencies in Malaysia.

The Malay Mail quoted sources who said that the government has a better database now. It is drawn up based on data from pension fund contributions, the applicant’s payslips, and vehicle ownership data with the Road Transport Department (JPJ). The Star reported that the government will also look at household electric bills that amount to between RM 100 and RM 200 monthly. Also, the assistance only applies to those whose monthly household income is less RM 3,900.

As for the amount of subsidy, the Ministry may be adhering to Minister of Finance Lim Guan Eng’s proposal in November. The plan calls for subsidising owners of motorcycles below 125cc and cars below 1,500cc with a minimum of 30 sen per litre of RON95 petrol.

The total amount of subsidised petrol is 40 litres for motorcycles and 100 litres for cars per month. The subsidy amounts to RM 12 for motorcycles and RM 30 for cars per month. The amount will be transferred to the recipients’ bank accounts on a monthly basis.

The current price of subsidised RON95 is capped at RM 2.08 per litre. Prices would fluctuate according to a weekly float once the subsidy is removed and may see an increase to RM 2.49 per litre.

It was revealed that government currently spends an average of RM 133 million a week on fuel subsidies.

Sumber imej : springadvertise.co.za
  • Kementerian Kewangan telah membuat usulan pelan subsidi minyak petrol RON95.
  • Ia meliputi motosikal bawah 125cc dan kereta di bawah 1,500cc.
  • Pemilik motosikal yang berkelayakan akan menerima subsidi petrol sebanyak 40 liter manakala pemilik kereta yang layak akan menerima subsidi petrol sebanyak 100 liter.

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  • The Finance Ministry has proposed a RON95 petrol subsidy plan.

  • It covers motorcycles below 125cc and cars below 1500cc.

  • Eligible motorcycle owners get 40 litres and car owners 100 litres of subsidized fuel, respectively.

The government through the Finance Ministry has proposed a new petrol subsidy system. The plan applies to RON95 petrol only for motorcycles below 125cc and cars below 1500cc.

The Finance Minister, YB Lim Guan Eng made the announcement when he tabled the 2019 Budget in Parliament earlier today.

He also revealed that the move will cost RM 2 billion, covering some 4 million car owners and 2.6 million motorcycle owners. The subsidy will allow for a maximum of 40 litres for eligible motorcycle owners, and 100 litres for car owners.

No mechanism has yet been revealed on how the plan will be implemented. However, we expect the Road Transport Department (JPJ) to contact those eligible. They will then be provided with a subsidy card.

We will leave it to your opinion whether the announcement is good news or otherwise. In our opinion, the proposed plan should benefit motorcycle owners who are not well-to-do. It means those who have the means will support the less fortunate. The current blanket subsidy system benefits everyone, by contrast. That explains why the government suggested motorcycles below 125cc, instead of for example, below 250cc.

The announcement is currently a proposal, as the budget needs to be approved by the majority in Parliament. Let us see how it turns out should the proposal make it through.

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