RON95 petrol subsidy removal in Malaysia – car owners to get RM150, bikers RM50 cash per month?

RON95 petrol subsidy removal in Malaysia – car owners to get RM150, bikers RM50 cash per month?

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.

RON95 petrol subsidy removal in Malaysia – car owners to get RM150, bikers RM50 cash 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.

RON95 petrol subsidy removal in Malaysia – car owners to get RM150, bikers RM50 cash per month?

“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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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • TinKosong on Jul 01, 2024 at 4:28 pm

    Beware Rakyat also have formula for next GE.

    Like or Dislike: Thumb up 10 Thumb down 4
  • Proton oh Proton on Jul 01, 2024 at 4:30 pm

    Rakyat kena scam dgn MAHALDAHNI

    Like or Dislike: Thumb up 8 Thumb down 3
  • MassivelyAnnoyed on Jul 01, 2024 at 4:53 pm

    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

    Like or Dislike: Thumb up 21 Thumb down 2
    • Gomorrah on Jul 01, 2024 at 10:36 pm

      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.

      Like or Dislike: Thumb up 4 Thumb down 1
    • Lets See on Jul 03, 2024 at 12:10 pm

      They are taking rakyat money thru removing subsidies all just to buy themselves each an expensive for use as mentri cars. Is their subsidy remove excuse still valid?

      Like or Dislike: Thumb up 4 Thumb down 0
  • ROTI CANAI on Jul 01, 2024 at 5:10 pm

    Naik aje la…let it float. Bosan dah.

    Like or Dislike: Thumb up 13 Thumb down 4
  • bieight8 on Jul 01, 2024 at 5:14 pm

    Should just increase by 10 cen per litre every month

    Like or Dislike: Thumb up 7 Thumb down 2
  • Siaaaa on Jul 01, 2024 at 5:24 pm

    Jidu, time to buy hybrid?

    Like or Dislike: Thumb up 4 Thumb down 1
  • Dah Menang Semua on Jul 01, 2024 at 5:50 pm

    Can’t wait this to happen
    Now hilux and lorries
    Already drive slowly

    Like or Dislike: Thumb up 15 Thumb down 3
    • VASAN on Jul 02, 2024 at 4:24 pm

      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

      Like or Dislike: Thumb up 2 Thumb down 3
  • Let down on Jul 01, 2024 at 5:57 pm

    Keeps on delaying decisions/announcement, no time for rakyat to plan, can please delay paying these lawmakers pay too please?

    Like or Dislike: Thumb up 11 Thumb down 1
    • 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.

      Like or Dislike: Thumb up 8 Thumb down 2
  • Mat rempit on Jul 01, 2024 at 7:31 pm

    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

    Like or Dislike: Thumb up 4 Thumb down 3
  • 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.

    Like or Dislike: Thumb up 5 Thumb down 1
  • Ng Kar Leong on Jul 01, 2024 at 8:12 pm

    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.

    Like or Dislike: Thumb up 6 Thumb down 4
  • Bomboloni on Jul 01, 2024 at 8:57 pm

    For me 1.5liter Petrol engine doing grabcar i allocate around 20liter perday. We dont have days off so 20×7 140 liters perweek.

    Like or Dislike: Thumb up 0 Thumb down 3
  • Hindsight is often 20/20 on Jul 01, 2024 at 10:39 pm

    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.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Nonsense

    Like or Dislike: Thumb up 1 Thumb down 1
  • KUMARESEN SOMASUNDRAM on Jul 01, 2024 at 11:20 pm

    Good

    Like or Dislike: Thumb up 1 Thumb down 3
  • kerongmerong on Jul 02, 2024 at 3:31 am

    why???

    Like or Dislike: Thumb up 1 Thumb down 1
  • Norbert Joseph on Jul 02, 2024 at 8:14 am

    Comprehensive with windscreen coverage

    Like or Dislike: Thumb up 0 Thumb down 1
  • Mohd. Saman bin Ismail on Jul 02, 2024 at 8:47 am

    I just want to get price for my estimate.

    Like or Dislike: Thumb up 0 Thumb down 1
  • michael tan on Jul 03, 2024 at 9:40 am

    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?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Marlizanmusdi Bin Yaacob on Jul 03, 2024 at 10:07 am

    No.comment

    Like or Dislike: Thumb up 0 Thumb down 0
  • Nuwar8481 on Jul 06, 2024 at 7:40 pm

    Xpayah susah2 buat sttmnt auta nk kaji bagai. Penaik je apa2 yg korang nak..

    Like or Dislike: Thumb up 0 Thumb down 0
  • Annuar is a conmen all promised of subsidies are not paid as per letter promised !!! No place to make enqiry after saying account paid. Beware Malaysian of more scam by Padu and government!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ong king hoo on Jul 09, 2024 at 11:35 am

    I have already had my calculation, same as Sungai Bakap, very simple, don’t have to explain to the Rakyat. More explanation = you have to accept it, please “understand”.

    Tukar, do they understand ? Rakyat already has enough of troubles in their daily life. Very easy to cross the voting space next to it.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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