The government has been urged to review its RON 95 petrol subsidy programme (PSP) beyond the planned structure, and take into account other alternative mechanisms such as creating a special petrol discount card, Bernama reports.
The suggestion for this came from members of the public, one of whom is a cost of living aid (BSH) recipient. Ahmad Sudir Tahir said that a discount card would ease the burden of fuel costs on a continuous basis. “For example, with the card, the government can set a discount of RM0.50 or RM0.20 per litre and that way, consumers can still enjoy lower prices even when oil prices increase,” he told the news agency.
The 45-year-old trader added that strict monitoring will be required to ensure that the privilege is not abused, especially by petrol smugglers, and that it would get to the right people. “The card must be given to those who are really eligible, such as people from the B40 and the M40 groups,” he said.
Firdaus Safawan Ismail shares the same view. The 37-year-old said that the discount card mechanism would be more beneficial, as the PSP is seen as a ‘one-off’ aid. “The PSP offers RM30 assistance which can only be used once (every four months), but a discount card can be used many times,” he said.
Meanwhile, academics say that while the idea of introducing a discount card would be novel, the the government should be given the opportunity to implement the PSP, from which improvements can then be made.
A system involving a discount card would need to be studied because it would involve payment at the petrol station, according to Professor Dr Azali Mohamed, dean of the faculty of economics and management of Universiti Putra Malaysia.
“I see that using this discount card may complicate the payment system process as compared to cash payments via PSP. Companies and gas stations may have to resort to different payment systems for consumers with discount cards and regular consumers,” he told Bernama.
He said that a proposal to improve the PSP, once it was in place, was to perhaps introduce payouts on a monthly basis rather than the planned schedule of once every four months.
Economic analyst Professor Emeritus Dr Barjoyai Bardai said the discount card proposal was ideal and could be implemented using existing cards such as MyKad or a new e-wallet system. “The government can add functionality to MyKad, but to set up a payment system may be costly. However, the PSP should be implemented and then gradually we will propose improvements,” he said.
The targeted subsidy scheme, which is slated to begin in January next year, will only be given to car and motorcycle owners based in Peninsular Malaysia who are also BSH recipients. Eligible recipients will receive RM30 a month (for car owners) and RM12 a month (for motorcycle owners).
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Lulu Trickster suggested using petrol discount card to create loopholes for scamming the nation. These discount cards will be traded in black market or even exchanged with dopes for addicts.
The whole country have been scammed by PH during GE. Smaller scams like this is nothing.
Sounds like disaster waiting to happen. Too many loopholes and impossible to fully enforced without incurring a lot of extra cost. People suggesting that might have been looking for loopholes.
I think half the story is about giving some form of subsidy to qualified person, and the other half of the story is to cut government cost. Some people forgot the 2nd half.
aiyo…just remove the fuel subside and let the petrol price float. But don’t remember to remove the ridiculous car taxes as well…and only apply 6% SST like any other consumer item. Problem solved.
No need la. For sure cronies get contract to supply the card and setup the system.
Aint they’ve paid rm25 millions to someone for that?
Basically boils down to the fact that the current subsidy is a joke, even for B40 and BSH people. RM30/month? Cover the price increase when Ron95 starts floating. Still need to suffer Rm2+ per liter.
This B40 petrol subsidy thing is also suspect. It doesn’t discriminate between BSH holders who rely on vehicles for income (who would greatly benefit from the subsidy) and BSH ppl who actually have a vehicle. So unless their study really found that there is a lot of BSH holders who own vehicles, then this scheme basically saves the govt a lot of money.
When Ron95 starts floating, a lot of people will be angry. Semua salah PH.
Petrol discount card got any hard limit? If no, then will be abused by certain parties. If got hard limit, then it’s just the same as the currently proposed method anyway.
RM25 million to study how to pay RM1 petrol subsidy per day… SPRM?
SPRM under who?
float the whole system. if you cant afford, take the bus.
reintroduce gst. pay for what you consume. if you cant afford, then dont consume.
high-earners always kena penalised for earning more.
low-earners need to buck-up and cut-down on cigarette and tea breaks.
Agree. Also government should subsidize in a way that give B40 chance to earn more, such as subsidize education. They will be able to handle themselves in the future.
Not subsidize now and 10 years later still need subsidy.
old govt, new govt…….still cannot solve the problem until donkey years….
I am sure the petrol subsidy problem wont be solved in the future. More committee to form, more meetings, more expert to hire, more studies, etc and more teh-tarik and karipap session….
The problem will solve itself when all vehicles in Mesia are powered by electric.
It will be solved once all low earners are gone.