Automotive Diesel Subsidies

Published on October 7th, 2019 | by Daniel Sherman Fernandez


RON95 prices going up in January 2020. Confirmed!

News just in that petrol prices are finally going to be floated. Which means it is going UP. RON95 petrol is the most used fuel type amongst Malaysian car owners (about 90 per cent) as the subsidised price makes it one of the cheapest in the region.

Now news just in that the Domestic Trade and Consumerism Minister Datuk Seri Saifuddin Nasution has announced that only ‘Bantu Sara Hidup’ (BSH) recipients were qualified for the fuel subsidy and gave assurances that the gradual move to lift the RON95 petrol subsidy would be done in a manner that would not burden the people.

“The mechanism that will be used to gradually float RON95 is under the Finance Ministry.

“For now, the status quo remains where fuel prices will be announced weekly,” Saifuddin said at the announcement of the Petrol Subsidy Programme here.

So far, he said about 2.9 million BSH recipients who had vehicles with valid road tax would get petrol subsidies from Jan 1.

“The qualified BSH recipients are those who own 1,600cc cars; own cars over 10-years-old and above 1,600cc; own motorcycles of 150cc and below, as well as motorcycles over 150cc, seven years and above.

“The subsidy will be paid once every four months and will be banked directly into the recipients’ accounts,” Saifuddin said.

Qualified BSH car owners, the minister explained would get RM30 per month and motorcycle owners, RM12 per month.

“For those who have both car and motorcycle, they will get petrol subsidy for whichever is higher.”

Saifuddin also said the disabled would get petrol subsidies, but it would only be for the underprivileged.

This move will upset a lot of Malaysian car owners who have been enjoying cheap fuel for years. 

This will also shift the sales of RON97 where affluent drivers of modern cars who have been using RON95 and saving money, will now shift to more expensive RON97 or even RON100 where applicable.

Saifuddin also added that fuel consumption in Malaysia was about 1.2 billion litres per month and only 10 per cent of vehicle users used RON97, while the rest used RON95.

BHP petrol

Current fuel prices (5th October to 11th October 2019) are as follows:

1. RON 95 – RM2.08

2. RON 97 – RM2.60

3. Diesel    – RM2.18

We wait to see if there will be a change in vehicle usage to public transport in 2020. 

There is also good news with this move as now there will be more reasons for Malaysians to look into hybrid car ownership and even better, full electric car ownership. The savings will be justified even more starting 2020.

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