Petrol subsidy programme won’t begin in January 2020 – RON 95 to remain at RM2.08 per litre for now

Petrol subsidy programme won’t begin in January 2020 – RON 95 to remain at RM2.08 per litre for now

The ministry of domestic trade and consumer affairs (KPDHNEP) has announced that the implementation of the petrol subsidy programme (PSP), which was originally planned to take place in January 2020, will be deferred to a later, unspecified date.

In an official press release released today (December 30, 2019), the ministry said the decision to delay the PSP was made following a Cabinet meeting held on December 18.

According to the ministry, the move will allow for more initiatives to be undertaken to ensure the public were well informed and prepared for the programme’s implementation. Additionally, the deferment gives the finance ministry room (and time) to continue the registration process of those in M40 group who are eligible for the PSP.

Pending an official update that will be announced later on, the public will continue to pay for petrol following prices set by the current system, where RON 95 is fixed at RM2.08 per litre, while the price of RON 97 is floated (currently at RM2.63 per litre).

Petrol subsidy programme won’t begin in January 2020 – RON 95 to remain at RM2.08 per litre for now

The government first revealed details of the PSP back in October 2019, where eligible B40 recipients – includes those who are entitled for cost of living aid (BSH) assistance – would be given a fixed subsidy rate of RM30 a month for car owners, and RM12 for motorcycle owners.

At the time, it was also announced that the current price cap of RM2.08 per litre for RON 95 will be removed and the fuel floated – like RON 97 is presently – once the PSP came into effect.

Later on, following tabling of Budget 2020, the government extended the coverage of the PSP to include those in the middle income M40 group, with the issuance of a “Kad95” for those with household incomes of below RM4,000 but are not eligible for BSH. It added that RM2.4 billion was allocated to the programme, which would benefit around eight million individuals in the B40 and M40 groups.

Petrol subsidy programme won’t begin in January 2020 – RON 95 to remain at RM2.08 per litre for now

Details of the PSP 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

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • seancorr (Member) on Dec 30, 2019 at 5:58 pm

    It’s gonna fail. Just like the child seat implementation.

    Like or Dislike: Thumb up 41 Thumb down 3
    • YB Albert Kunci Kunta on Dec 30, 2019 at 10:40 pm

      Haha..haha..PH ,now is renamed PAKATAN U TURN….”PUT “in short.
      All the reasons given are excuses to delay.The real reason: Rakyat mogok…mengamok…once petrol is Rm 2.70 /litre…transportation cost will skyrocket 30-40 percent.
      Going to school,work or places of worship..even roti chanai will cost a bomb by then.

      Like or Dislike: Thumb up 27 Thumb down 1
      • Kelantanianx on Dec 31, 2019 at 2:29 pm

        Petrol priced dem cheap RM2.08/l , smugglers got durian runtuh… buy cheap here, sell higher price over sempadan Siam, phillipine dan singapor. Dem untung habiss.
        my own cousin at Rantau panjang made clean Untung Rm1K per day, sell petrol to golok.

        Like or Dislike: Thumb up 2 Thumb down 0
      • Prince of the Earth on Dec 31, 2019 at 3:47 pm

        Problem in Malaysia, we have pampered the people too much. Especially the 1.6 million Government Servants in Putrajaya. These people are so used to subsidi, bantuan kerajaan, discounts for everything, even buy house also they demand for 8% discounts.

        In other countries, people work hard and save their money. They even save for education for their children. They don’t expect bantuan and subsidi kerajaan all the time, especially demanding biasiswas for education.

        Time we change our attitude. Only then, our country can really progress like Singapore.

        Both countries Merdeka same time but Singapore is now first world and No 1 most competitive country in the world with the 3rd highest GDP per capita in the world.

        Time for us to change

        Like or Dislike: Thumb up 0 Thumb down 6
        • EDITOR on Jan 01, 2020 at 11:15 pm

          Yes, one country the middle income earner said to be earning 3X more but still cannot afford to retire while another country even the lower income group can retire comfortably back in their kampungs. The answer is very clear which is better.

          Like or Dislike: Thumb up 4 Thumb down 1
    • Copy Paste on Dec 30, 2019 at 11:07 pm

      It’s gonna fail. Just like the khat implementation.

      Like or Dislike: Thumb up 7 Thumb down 7
      • Prince of the Earth on Dec 31, 2019 at 3:53 pm

        Actually, Malaysians must learn how to live within their means. The problem with Malaysians, they will buy luxury cars to show off to Opah when they balik kampung when in actual fact, they really cannot afford it.

        This is why, they find prices of oil and toll are very expensive cause they are maintaining a lifestyle they really cannot afford

        Like or Dislike: Thumb up 1 Thumb down 2
    • Turn M on Dec 31, 2019 at 12:10 am

      Kan dah beritahu Manifesto sebenar kita; penipuan diutamakan, janji dicapati

      Like or Dislike: Thumb up 19 Thumb down 1
  • We indon here earn lesser but petrol RM3.93/liter.

    Like or Dislike: Thumb up 16 Thumb down 3
    • Rakyat Malaysia on Dec 30, 2019 at 10:23 pm

      Indonesia is not an oil producing country but Malaysia is one.

      Like or Dislike: Thumb up 13 Thumb down 6
      • Indons are rich on Jan 01, 2020 at 7:16 am

        try google Pertamina

        Like or Dislike: Thumb up 1 Thumb down 1
        • Lolwhut? on Jan 01, 2020 at 11:14 pm

          Pertamina is just another oil dealer like Petron. Does Petron drill for oil? You got your answer there.

          Like or Dislike: Thumb up 2 Thumb down 0
      • redpilled on Jan 01, 2020 at 9:04 am

        bro, Indo is producing 833,000 barrels/day, way higher than ours at 661,000 barrels/day.

        https://en.wikipedia.org/wiki/List_of_countries_by_oil_production

        Like or Dislike: Thumb up 1 Thumb down 0
      • Malaysia imports oil.

        Like or Dislike: Thumb up 0 Thumb down 1
  • Crasher on Dec 30, 2019 at 6:56 pm

    This strategy is more convoluted than the ending of Inception, it hard to see it’s going to work. I don’t mind changing, but it needs to be easier to understand for all parties involved

    Like or Dislike: Thumb up 20 Thumb down 0
    • Prince of the Earth on Dec 31, 2019 at 3:56 pm

      We must learn to live within our means, only then, we will be able to afford everything and don’t need subsidi. What is the use when you work as a kerani and have an expensive lifestyle with many wives and 10 kids?

      Of course you cannot afford things. Then you blame the Government for not giving subsidi and bantuan

      Like or Dislike: Thumb up 0 Thumb down 2
  • Manifesto Dicapati on Dec 30, 2019 at 7:08 pm

    Hooray! Manifesto dicapati, UTurn ditepati

    Well-loved. Like or Dislike: Thumb up 53 Thumb down 3
    • Rakyat Malaysia on Dec 30, 2019 at 11:26 pm

      Habisla pok kambing jadi ikon, Hooray! Lebai

      Like or Dislike: Thumb up 3 Thumb down 0
      • Pok anai-anai, belalang kupu-kupu,
        trooper belajar tak pandai, jadi tukang ampu,
        jadi tukang ampu.

        Like or Dislike: Thumb up 1 Thumb down 0
  • pakatan rakyat on Dec 30, 2019 at 7:34 pm

    Pui!

    Like or Dislike: Thumb up 18 Thumb down 0
  • Hayenadeblue on Dec 30, 2019 at 8:05 pm

    Clown government, as usual.

    Like or Dislike: Thumb up 44 Thumb down 0
  • Digidigi on Dec 30, 2019 at 9:05 pm

    Simple la, at current oil price, if that is implemented , the government comfirm collapse in coming election

    Like or Dislike: Thumb up 28 Thumb down 2
    • Lolz! If they honour their promise of Rm1.50 petrol, they die. If they float prices and gip this peanuts subsidi, they die. If they maintain and break their promise, they die. Either ways, they die. This is what happens when they cheat the pipu and built their Gov with a house of cards made from tisu paper.

      Like or Dislike: Thumb up 29 Thumb down 2
      • Even got PT article saying that it was fake news. you trynna say that PT lied to its readers?

        Like or Dislike: Thumb up 0 Thumb down 1
    • redpilled on Dec 31, 2019 at 9:56 am

      this gomen konpom collapse no matter what…. conservatism is the new counterculture.

      Like or Dislike: Thumb up 15 Thumb down 1
  • Daddykasi on Dec 30, 2019 at 10:12 pm

    U turn again! Ohmai!

    Like or Dislike: Thumb up 4 Thumb down 1
  • RM1.50/L petrol mana? on Dec 30, 2019 at 10:24 pm

    As above

    Like or Dislike: Thumb up 11 Thumb down 0
  • Gabriel on Dec 30, 2019 at 10:41 pm

    Bunch of jokers…I can’t wait for the next ge

    Like or Dislike: Thumb up 6 Thumb down 0
    • Angry Voters on Dec 31, 2019 at 4:33 pm

      Yes! Spot on! 10000% support your comment! We need to change them now!

      Like or Dislike: Thumb up 3 Thumb down 0
  • theboppy on Dec 30, 2019 at 11:32 pm

    Would be nice to know what kind of research led to the government’s incentive choice? 2 cars + 2 motorcycles eligible for RM30/month AND your HHI can’t be more than RM4k.. what kind of vehicles are these? Doesn’t sounds cost effective nor impactful to the recipient. Subsidies to tolls or public transport would’ve made more sense imo. What do you guys think?

    Like or Dislike: Thumb up 4 Thumb down 0
  • MeiLi on Dec 31, 2019 at 1:19 am

    Mahathir – NotMyPM, Lim Guan Eng – the most stupid finance minister in the history of Malaysia.

    Like or Dislike: Thumb up 26 Thumb down 4
  • Theresa May on Dec 31, 2019 at 8:14 am

    Just keep it float and capped, and then give a lump handout like BR1M would do lor.
    They should’ve never touched GST in the first place, despite being unpopular. They could’ve still receive steady flow of income, but now they’re scrambling to top up income from other streams instead.

    Like or Dislike: Thumb up 15 Thumb down 1
  • Sea Tunnel Engineer on Dec 31, 2019 at 8:44 am

    Don’t complain. Our gomen is doing their best especially LGE

    Like or Dislike: Thumb up 7 Thumb down 27
  • vivizurianti on Dec 31, 2019 at 9:10 am

    U-turn (lagi) before Year 2020.
    Another “excellent” half-baked action by the clown minister in the Govt.

    Expect more U-turn in 2020? You betcha.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Dedak warrior : This is U-turn gomen. Wont dare to implement, surely lose next election. Fuel price hike will make rakyat suffer. Subsidy is a must as we have been living with it since forever.

    PH warrior : Delayed coz need to study properly the implementation so that no ‘leakage’ take place.

    Neutral citizen : Cut the crap, no more fuel subsidy. It happened before and people bark2 for 1-2 month then just get on with it. Now it happen again, confirm people will bark2 for 1-2 month esp the ‘dedak generation’ then just get on with it. Increased cost of living? I will use the most valuable gift God gave me-my brain to work my way around it.

    Which one are u?

    Like or Dislike: Thumb up 1 Thumb down 19
    • Logical Deduction on Dec 31, 2019 at 12:36 pm

      BN: We give realistic way of living. Sure cost of living goes up but we will cushion it for everyone and the most vulnerable.

      PH: We say that is BS as our fantastic economists and experts say we can easily give unicorns and cheap petrol and lower cost of living and first world country and everything else we can promise.

      Rakyat: Oooohhhh! Look at the shiny promises and future of PH, I loike!!! Look at the grim reality from BN, hate it! Time to UBAH! (Later on) Oh shit! What the hell did we just did! OMG! WHHHHYYYY?!?!?!?!!

      Like or Dislike: Thumb up 24 Thumb down 3
  • johnnas on Dec 31, 2019 at 10:40 am

    Dang nab it….float the fuel price and drastically reduce those import and excise duties if not remove….kimak betul.
    Its fair for everyone and would eradicate illegal subsidized fuel sales too!
    If one is to look at the gomen revenue in flow and it’s redistribution, betul betul pening kepala. It is this is why the financial management of this country is not strong and transparent, not to mention the loopholes! This is just like “I Love You Phillip Morris” movie!

    Like or Dislike: Thumb up 1 Thumb down 0
  • xoxox on Dec 31, 2019 at 11:39 am

    this is funny…
    3 motor+1 car = no sub
    2 motor+2 cars= have sub
    where is the logic there?
    Minister brain all store shits?

    Like or Dislike: Thumb up 27 Thumb down 0
  • Toh Siew Hua on Jan 01, 2020 at 12:42 pm

    How do I apply for the subsidy. I’m a retiree

    Like or Dislike: Thumb up 1 Thumb down 1
  • Holy candidate on Jan 02, 2020 at 8:22 am

    Breaking News
    Dear Ahli BN now u guys know what to do if u guys wanna win back hati rakyat.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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