Published on November 28th, 2019 | by Subhash Nair0
RON95 Price To Increase 1-2 Sen a Week Until Market Price Reached
The Domestic Trade and Consumer Affairs Ministry today announced that the price of RON95 petrol would increase at a rate of 1 to 2 sen a week until it reaches market price. This is anticipation of the Petrol Subsidy Programme and the government’s plan to float the price of petrol when that kicks in in 2020.
The RM2.2 billion Targeted Subsidy Programme will be commence in January. Only those with 2 cars and 2 motorcycles or fewer can benefit from this programme. Qualified recipients will receive RM30 through cash deposit into their bank account.
The Targeted Subsidy Programme will not be applied to Sabah and Sarawak. There a bulk subsidy scheme will be put in place instead.
Currently, the price of RON95 stands at RM2.08 per litre and RM2.18 per litre of Euro2M diesel. It will be kept at that level for Sabah and Sarawak. The Targeted Subsidies Programme will not kick in should fuel prices fall below these current prices.
Press Release regarding the Petrol Subsidy Programme from 8 October 2019
The giving of fuel subsidy through the Petrol Subsidy Programme (PSP) is the right move by the government to ensure that the aid benefits only the B40 group, said Prime Minister Tun Dr Mahathir Mohamad.
He said this is to prevent ineligible groups from enjoying the fuel subsidy from the government.
“Studies have shown that there are people owning six cars who benefit from the fuel subsidy and that is why we are giving for only one car from the B40 group.
“We cannot give subsidy to the rich, and we see that under the old subsidy those using luxury cars like Rolls-Royce also get the subsidy.
“This is the right kind of aid targeted at those who need it, not where those with luxury cars also enjoy fuel subsidy from the government,” he told reporters at the Parliament lobby here today.
Dr Mahathir was commenting on Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail’s announcement yesterday that the PSP, which will be implemented on Jan 1 next year, would ease the burden of some 2.9 million recipients of Bantuan Sara Hidup (BSH) who have cars in peninsular Malaysia.
A subsidy of RM30 per month will be given to owners of cars 1600cc and below and those exceeding 1600cc but more than 10 years old, while RM12 per month to owners of motorcycles 150cc and below and motorcycles above 150cc that are more than seven years old.
The subsidy will be given in cash and credited directly into the accounts of recipients every four months.
With the implementation of the PSP, RON95 will be floated in peninsular Malaysia for non-recipients of BSH but its price will be fixed at RM2.08 per litre in Sabah, Sarawak and Labuan.
Meanwhile, Saifuddin Nasution said the government will look into an opt-in and opt-out option for the recipients of the targeted fuel subsidy.
“I will welcome it if the data is not complete, that means if others feel they should be included (as recipients of the PSP), then we are okay with that and we do the opt-in and opt-out,” he told reporters when met at the Parliament lobby.
He was responding to questions on why only the BSH recipients are eligible to receive the targeted fuel subsidy.
When asked why the PSP is not implemented in Sabah and Sarawak, he said: “The numbers of petrol consumption (there) are relatively low as compared to Semenanjung.”