While the government says it is continuing to study the expansion of its fuel subsidy rationalisation programme to incorporate RON 95 petrol, stating it has yet to make any decision on the subject, it is inevitable that this will happen, although likely not in the immediate future.
Of course, talk about how much financial assistance will be offered as well as how it will be provided has begun. So what would a decent minimum sum be for monthly cash aid? Well, according to Malaysian University of Science and Technology (MUST) economist, emeritus professor Barjoyai Bardai, that would be at least RM50 a month for motorcycle owners and RM150 for car owners.
“Previously, there was a calculation made, but it was unofficial, venturing that motorcycle owners will get RM30 a month and car owners with a vehicle that had an engine displacement less than 1,000cc will receive RM120. If you follow the amount, it is not enough,” he told Sinar Harian.
Currently, unsubsidised RON 95 sells for RM3.19 per litre, according to unsubsidised fuel outlet Double, which sells the fuel at specialised stations in Perlis. Based on this rate and the present RM2.05 per litre subsidised price of the fuel, a RM150 cash aid would cover the first 131.7 litres of petrol used in a month. At present, the amount of Budi Madani assistance for diesel vehicle owners is RM200 per month.
As for how that assistance can be dispensed, he said the government has at least five methods of distributing petrol subsidies that would avoid leakages. The first two are the use of identity card (MyKad) and the introduction of a new special ID, while the three other methods are cash transfers through debit or credit cards, cash vouchers and the creation of special systems of payment, such as a dedicated e-wallet.
“The identity card is one of the most important foundations that the government needs to focus on if it wants to implement the targeting of RON 95 petrol so that it reaches the target group,” he said.
However, Barjoyai said that attention needs to be paid to ensure that the subsidies reach the right crowd, and so qualification must be determined by complete data provided by the Pangkalan Data Utama (PADU) socio-economic database.
“This system (PADU) will determine how much subsidy can be given through channeling models, whether using cash transfer methods through debit or credit cards, cash vouchers or e-wallets and special IDs later,” he said. It is worth noting that despite PADU registration, the government had those eligible for diesel subsidies apply for it via the Budi programme, which makes one wonder what PADU was for.
Barjoyai however believes that the move won’t happen so soon, and it will only probably be implemented in June next year at the earliest. “I don’t think petrol subsidy targeting will be made this year because the government needs data from the new diesel subsidy experience implemented in June,” he said.
“Most importantly, the government wants to know the effect on inflation, the price of goods and so on. These statistics will only be known in the third quarter, next October. After obtaining these statistics, there are other matters that need to be examined by the government,” he explained.
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Beware Rakyat also have formula for next GE.
Rakyat kena scam dgn MAHALDAHNI
Malaysia is the first country in the world to launch identity card with smart chip embedded in it. After more than 20 years, this card still can’t be used to smartly identify us across different service. Our IC contains digital copy of our photo and fingerprint in it that can be used to verify our identity. Why so hard? Petrol company no money incorporate biometric identification at station? Use part of the subsidy saved to subsidise the implementation la
As if they no money. In any case it is a moot point. If the government requires it, they have to figure it out. Your suggestion just makes too much sense for any politician to implement. You need to dress it up as a get rich quick scheme for cronies then sure boleh jalan.
Naik aje la…let it float. Bosan dah.
Should just increase by 10 cen per litre every month
Jidu, time to buy hybrid?
Can’t wait this to happen
Now hilux and lorries
Already drive slowly
The spinoff will be great ! Lesser jams as more people will resort to public transport. Less pollution as there is no traffic congestion. Offices will be happy as attendance will be more prompt and productivity will increase…. etc…etc
Keeps on delaying decisions/announcement, no time for rakyat to plan, can please delay paying these lawmakers pay too please?
Just kick them out and reinstate diesel subsidy in full again, then force all businesses to return prices back to sanity before this stupid decision.
We discovered a new past time. Stealing fuel from vehicles parked on the streets. Don’t call us mischiefs. Your beloved gomen forced us into a corner
The removal of subsidies is very complicated. Needed to create new gomen departments and more civil servants to operate the scheme. Just removing it would have been a lot cheaper. And subsequent strengthening of our currency that comes with it will mean cheaper fuel in the long run.
If singapore had not taxed its fuel so highly, a litre would cost them slightly more than S$1. That is why current gomen must focus on strengthening the currency.
What kind of economist can recommend RM 150 for car and RM 50 for bike. It should be RM 500 and RM 150 respectively for car and bike.
For me 1.5liter Petrol engine doing grabcar i allocate around 20liter perday. We dont have days off so 20×7 140 liters perweek.
This is the best example to introduce Bolehland to the curious — all talk, no action. Think this subsidy talk begun sometime in 2019 and till now we’re still “brainstorming” FFS. Just remove the subsidy and sh’t would start washing ashore.
Nonsense
Good
why???
Comprehensive with windscreen coverage
I just want to get price for my estimate.
I think the only reason eu and us has not put tariff on Malaysian made goods is they can’t if subsidy is given to everyone in the country. Targeted logistics subsidy will be trouble. Why not control abuse by making rakyat buy fuel using mysejahtera?
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