The new petrol subsidy programme (PSP) is set to start next year, which means that unless you’re eligible, RON 95 petrol is set to be costlier. The government has previously said that the jump from the current subsidised rate to the market price will be gradual, and now we have more details on how gradual it’ll be.
According to deputy minister of domestic trade and consumer affairs Chong Chieng Jen, RON 95 petrol prices will move up by one sen per week till it reaches the market price, Harian Metro reports.
“The decision to float the fuel price is to reduce the rakyat’s cost of living and to avoid the prices of goods rising sharply. We will float the price of petrol in stages, by one sen a week until it reaches market rates,” he said in parliament today in response to a question on how the ministry plans to avoid a spike in prices of goods once PSP kicks in. He added that KPDNHEP also has the price control act to ensure that traders do not take advantage of PSP for profiteering.
Chong said that PSP will not be applicable in Sarawak, Sabah and Labuan, where motorists will continue to enjoy RON 95 petrol at the current price of RM2.08 per litre. Previously, minister Datuk Seri Saifuddin Nasution Ismail was quoted as saying that this is because it does not cost so much for the government to subsidise RON 95 in East Malaysia, given that there are more diesel car users there.
Details of the PSP scheme are as follows:
- The subsidy will only be given to car/motorcycle owners, and is limited to one vehicle per recipient. If a person owns a car and a motorbike, then he/she will receive the higher subsidy, which is for the car. The car or motorcycle must be registered under the recipient’s name.
- The subsidy rate will be capped at RM30 a month for car owners, and RM12 a month for motorcycle owners.
- The government will reimburse the subsidy once every four months, so car owners will receive RM120 and motorcycle owners will receive RM48 every four months. The payment method will see cash being directly credited into the recipient’s registered bank account. The first payment is scheduled for April 2020.
- Only those who are entitled for cost of living aid (BSH) assistance, with their names listed in the BSH database for receiving such allowances, will be able to receive the new petrol subsidy. All handicapped people will also be given the subsidy.
- The household income of the recipient must not be more than RM4,000 per month.
- To qualify, a recipient can only own a maximum of two cars and two motorcycles at any one time in his/her household. See the info-graphic panel above for a clearer picture of what vehicle combination qualifies and what doesn’t.
- For cars, the pre-requisite is that the engine displacement must be:
– 1,600 cc or below
– or above 1,600 cc, but only for cars that are 10 years old and above
- For motorcycles, the pre-requisite is that the engine displacement must be:
– 150 cc and below
– or above 150 cc, but only for motorcycles that are seven years old and above
Saifuddin said that a total of 2.9 million people are expected to benefit from the new subsidy scheme, which will cost the government about RM65.4 million a month. This is lower than the average of RM133 million it says it currently spends weekly in fuel subsidies.
He said that if the price of petrol drops below RM2 per litre, the government will relook at the subsidy and may defer its implementation.
Without the price cap in place, RON 95 petrol would actually be priced at RM2.36 per litre this week based on the finance ministry’s Automatic Price Mechanism (APM) calculations.
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Syukur! Syukur that petrol is still cheap today. Thanks to our game changing PH goverment, now I can save my financial for other needs
As above.
Syukurr..still the cheapest petrol in the region …
Thanks to gamechanging PH government, now they will gameover soon enough. Lolololol!
I hope another by-election coming soon.
Be prepare for ski-hi rise on cost of living very soon …. useless measure. Only giving rakyat more burden!
No, I don’t believe on fuel price up will increase cost of living. The advance technology and high competition in all segments are keeping the price getting lower and lower in past 5 years. In recent 5 years only food and beverage, and medical cost went but others mostly went down. What I hope with increase of petrol price to meet the market price at least we should get a better quality fuel than current Euro 2 grade.
To: the Minister Concerned,
Try to spend RM48.00 at local supermarket within 4 months period……and see what you can buy. Or see what you can buy with RM12 at a supermarket today.
RM has very little value today. Dont know the subsidy can really help the poor.
Enuf said.
Do u know BRIM rakyat very loaded now?
Got Brim cash handouts and now rm360 a year petrol subsidy.
What about us retirees who receive no financial assistance from children and gomen and just miss out qualifying for BRIM?
It make more sense to cut car taxes instead of taxing non BRIM rakyat for petrol.Look at Iran…petrol increase causing daily suppressed demos.
PH…a one term wonder.
Don’t complain la… just accept this
Our beloved LGE is doing his best
WHAT donkey sense you talking? Give TARUC/UTAR rm 30 juta also give string of conditions.
He will be voted out by his own skin color coming GE15.
The rocket will be destroyed in next GE.
Make no mistake.
Just maintain subsidy.Cut the blardy flying car,3rd national car mega projects.Stop all unwanted mega projects…makes more sense.
Nice joke
I don’t see how it helps the rakyat. Why not government take back the subsidy and push up our Ringgit value? and invest on the infrastructure and reducing the toll price. I think it will be more effective.
Why need to push up Ringgit value while MOST of the countries in the world are seeking way to push down their currency to increase competitiveness and attract foreign investment. Economy downturn period low currency rate (still manageable) is standing greater opportunity than high currency rate. All people know Thai Baht is great but how many of us know their citizens are in great suffer now as the tourism badly impact and export business badly affected. The central bank has attempt to rescue but billion of Baht burned still it did not turn out depreciation. Because the foreign investment is simply too fast, mean money come in to the country is too greater than money go out.
Again the economy of the globe is slow, high currency rate stand no advantage at all.
In that case, gomen should oso consider to reduce vehicle price by rm10 every week till it reaches actual market price.
Forget the fuel subsidy….
please remove the car tax.
In Australia, a camry is only rm 86k. In Malaysia it is how much??????
Whats the logic behind weekly increase of 1 cent. It will still reach market price and people will bear the avalance effect. Its not like our income will increases every week to compensate the living cost.
Sudden surge to be monitored by KPDNHEP?
Nahh….its just a feel good statement.
Its like we know that Terminator is coming next month to kill us but we just delay it few month. After few month, we still die.
With no petrol subsidy, whats the logic of engine size-based roadtax?
Come one….be a gentleman gomen.
Do you really think they care about us? If they actually do, then the attendance at the Dewan Rakyat wouldn’t have been so poor.
More locals should go out and work and kick all immigrants back. Like that only RM will get stronger. Money rolling out of malaysia caused ringgit to drop. Don’t blame price of goods up bcoz of petrol. No one wants to do agriculture that caused us to import food into malaysia
Betuii brader .. local grad kita lulusan IT degree tp reti maen fesbuk youtube jek. Gaji plak mintak 8, 10 ribu… Setakat fesbuk utube anak aq yg 3 tahun pon pandai belaka. More locals should go out and do all immigrants agriculture work
Another Malaysian blaming Malaysian. Cukuplah si tua kerepot tu aja. Hey, u ever wonder 2 years ago why we had good economy? Now so bad?
2 years ago why we had good economy?
Coz 1Mdb gv good economy. 1Mdb X hutang..
when government is using money on rakyat, they think of million ways to reduce it.
How about you charge twice the prices of imported cars, masuk pocket how many decades and now diam diam eh? Never see you try to reduce it? Crap government.
Bingai punya LGE. Buat malu my kaum. If he can come out with car price reduction (0 tax), he is brilliant. Otherwise, he simply is Nobita. You know who is Nobita. Dont want to talk much abt PH or politic.
JUST PLAIN IDIOTS, MAKING THINGS HARD AND INTRODUCING COMPLICATED SYSTEM. BUZZ OFF
I do not complain if the government insist to increase one cent every week till it reaches market price, but please implement EURO 4 for RON95. It is not fair if increase of price but yet still keep the quality the same. The government should implement the RON 95 Euro 4 on 2018 but postpone until 2020. We hope the government will keep their promise to implement on 1st Jan 2020. At least the Euro 4 is cleaner and can helps to save some fuel and lower CO2 emissions.
Slow slow wait lah. Pakatan Hopeless has no incentive to launch Euro4 RON95 petrol.
If ada songlap opportunity on this, sure faster implement already.
not same as what been promised
Hahahahahahahaha, if this happened only two years ago, the comments will be like hundreds in just few minutes. Now, been few hours after the news was posted, only less than 50? Come on, where are the PH cybertroopers at? I wanna see your thoughts, especially the same copy-pasta comments on every news. Malas buat kerja ka?
“Hari ini kita menang…Esok minyak turun..” That time before they become gomen…now, after elected by voters, they try to float the RON95 price..PHundek…