Targeted fuel subsidy mechanism yet to be finalised

Targeted fuel subsidy mechanism yet to be finalised

The new targeted fuel subsidy mechanism that is supposed to be implemented in Q2 2019 is yet to be finalised by the government. This was said by deputy domestic trade and consumer affairs minister Chong Chieng Jen today in parliament, reported by The Star.

“At the moment, no final decision has been made on the mechanism. The finance ministry (MoF) has called for an open tender for parties interested to propose the best mechanism for the implementation of the targeted subsidy,” he said in reply to a question by Jempol MP Datuk Salim Sharif.

The deputy minister said earlier that the government wanted to ensure that only those eligible would benefit from the programme, and that his ministry was working closely with the MoF to ensure that the petrol subsidy would not be abused. “The subsidy system must be simple to use and can be used by all petrol stations throughout the country,” he added.

The plan to move from blanket fuel subsidy to targeted subsidies for the B40 group was announced by finance minister Lim Guan Eng in Budget 2019. The mooted plan was to offer subsidy of 30 sen per litre up to 100 litres a month, for cars with engines below 1,500cc. Motorcycles with engines below 125cc will get 40 litres of RON 95 a month at the same rate. Owners of multiple and “luxury cars” will not be eligible, although the definition of the latter wasn’t determined.

RM2 billion has been allocated for this new initiative, which is expected to benefit more than four million car owners and 2.6 million motorcycle owners. As for those who won’t be eligible, the government has said that it will ensure that the increase in RON 95 petrol prices will be gradual, once the price is floated.

“Let’s say on the first day of implementation, the difference (between controlled and market prices) is 30 sen (per litre). We don’t want that. Even though the price must go up by 30 sen, it should be gradually over a set period – say six to eight months,” domestic trade and consumer affairs minister Datuk Seri Saifuddin Nasution Ismail was previously quoted as saying.

Currently, the RON 95 petrol price is being capped at RM2.08 per litre, while RON 97 is sold for RM2.46 per litre. Diesel is also at its maximum capped price of RM2.18 per litre.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • kukumalu on Mar 13, 2019 at 3:16 pm

    talk only ah

    Like or Dislike: Thumb up 33 Thumb down 0
    • YB Kunta Kinte on Mar 13, 2019 at 5:28 pm

      This system won’t work because Malaysian families are huge. 1 person will be using the ICs of his father, mother, atuk and nenek.

      Some families got also 6 siblings. One person can use all the 6 ICs to get fuel subsidy.

      Many Malaysians like to cheat.

      Like or Dislike: Thumb up 25 Thumb down 45
      • Semua dapat, whats wrong if the subsidy is for Malaysian? I say thats good.

        Like or Dislike: Thumb up 3 Thumb down 14
        • Vader on Mar 13, 2019 at 7:22 pm

          Many unscrupulous smart working individuals caught misused the MyRapid concession cards. Those nabbed using student concession cards, OKU, senior citizen concession cards and even faking disability. Their common cheating excuses mainly ‘borrowed’ the cards from member and saudara

          Like or Dislike: Thumb up 11 Thumb down 0
    • UTurn M on Mar 13, 2019 at 5:46 pm

      Talk first. Make it big. Then deliberate. Then study and study and study. Finally…. UTURN!

      Like or Dislike: Thumb up 32 Thumb down 2
  • Benzs on Mar 13, 2019 at 3:23 pm

    Good but confusing

    Like or Dislike: Thumb up 2 Thumb down 2
  • digidigi on Mar 13, 2019 at 3:43 pm

    B40 will be subsidised, others just follow market rate, good luck m40, T20 is ok, coz they always creative can enjoy to pump with b40 price

    Like or Dislike: Thumb up 4 Thumb down 0
  • No need la … fuel same as water and electricity, Gov should subsidies. Car price already high. Just make sure the fuel for Malaysian only!.

    Like or Dislike: Thumb up 14 Thumb down 0
  • drMpower on Mar 13, 2019 at 3:53 pm

    give me the contract then i will give u the system next week.
    partial subsidies for M40
    full subsidies for B40
    no subsidies for T20 and expatriats

    thats one

    full subsidies for 1.5cc and below
    partial subsidies for 2.0cc t0 1.6cc
    no subsidies for 2.1 cc and above

    thats two

    filling petrol need mykad
    expats ofkos no mykad then pay no subsidies prices

    whos handling this, give me a call right now

    Like or Dislike: Thumb up 5 Thumb down 5
    • kyosho king on Mar 14, 2019 at 2:05 am

      ROTFL Why you only subsidised hobby toy nitro r/c car? 1.5cc 2.1cc too small engine!

      Like or Dislike: Thumb up 4 Thumb down 0
  • tatu880 on Mar 13, 2019 at 4:12 pm

    I don’t see how this proposal can be implemented smoothly. Sure there will be loopholes and people will take advantage over it.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Aniki Tan on Mar 13, 2019 at 4:30 pm

    actually it’s very easy, just keep the receipt and submit for tax relief, if a person is fall under B40 sure he can get back the money easily and by this way, government can collect more money from those who never declare tax before.

    Like or Dislike: Thumb up 20 Thumb down 1
  • SALang on Mar 13, 2019 at 5:16 pm

    Why want to make thing complicated? For those who entitle for it, just waive the yearly road tax ( max only RM 90 a year per car ) plus some rebate to their car yearly insurance.
    If RM 30 to be subsidised monthly, total is RM 360 per year.
    So just rebate RM 270 to their car insurance ( after minus RM 90 for road tax).
    Let the insurance company claim from G. Then Rakyat don’t have to claim from G. Rakyat still renew road tax n buy insurance as usual but pay lesser.
    Kan senang.

    Like or Dislike: Thumb up 33 Thumb down 0
  • I still think method during Pak Lah time easiest. All pump market price. then depend on income group yo apply for rebate during renewing roadtax.
    Less effort and administrative cost, less enforcement require too.

    Like or Dislike: Thumb up 12 Thumb down 0
  • Haiyaaa.. simple maa..

    Use rebate systen lah…
    Allocate certain limit, say RM300 per person..
    Buy fuel, Use your MYKAD, then end of the month, the rebate will be bank-in into your bank account.. IF you use your atuk’s MYKAD, then your atuk got the rebate money lah..

    Like or Dislike: Thumb up 4 Thumb down 0
  • johnissohai on Mar 13, 2019 at 6:41 pm

    we will be seeing alot of b40 people standing beside petrol station offering to help you pump petrol with some commission.

    so 1 car charge rm10…imagine if 50 cars a day..hmmm…not bad

    Like or Dislike: Thumb up 3 Thumb down 0
  • Sure kelam kabut once started.

    Like or Dislike: Thumb up 6 Thumb down 0
  • RM1.50/L petrol mana? on Mar 13, 2019 at 7:20 pm

    As above.

    Like or Dislike: Thumb up 13 Thumb down 1
  • vVivi Zurianti on Mar 13, 2019 at 9:30 pm

    I bet more studies will come……and amount to nothing. Janji capati with kuah dahl. haha

    meeting, meeting, study, study, by expert this, expert that etc….while makan karipap and drink teh tarik…..

    Like or Dislike: Thumb up 2 Thumb down 0
  • john doe on Mar 13, 2019 at 10:59 pm

    why fuel subsidiary for those who effort to buy cars?
    might as well goes to those provide free public transport, discount public transport price instead.

    the mat rampit, illegal business trucks, lorries all benefited for this so call subsidiary

    Like or Dislike: Thumb up 2 Thumb down 0
  • Keep receipt today after 12 month the printing on the receipt all gone.. Show tax office receipt with no printing

    Like or Dislike: Thumb up 2 Thumb down 0
  • Subsidi tersasar on Mar 14, 2019 at 2:02 pm

    I bet they will mak u turn move..

    Like or Dislike: Thumb up 1 Thumb down 0
 

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