Targeted RON95 subsidy – more than 99% of drivers use under 300 litres of petrol a month: finance ministry

Targeted RON95 subsidy – more than 99% of drivers use under 300 litres of petrol a month: finance ministry

With the announcement of the 300 litre monthly quota for subsidised RON 95 petrol that will be priced at RM1.99 per litre from September 30, the ministry of finance has stated that more than 99% of privately owned vehicles will use less than 300 litres of fuel in a month.

The Malaysian government had arrived at the 300 litre monthly quota based on data from the Department of Statistics (DOSM), said finance minister II Datuk Seri Amir Hamzah Azizan.

“If we had set the cut-off at 140 litres per month, 90% of Malaysians would qualify, but the government said, ‘We want to ensure the majority of people benefit.’ Thus, the cut-off we decided upon is one that covers 99% of the population,” he said, reported The Star.

RON 95 petrol usage projection – click to enlarge

According to briefing illustrations from the ministry of finance, Malaysian motorists of the 90th percentile use up to 140 litres of petrol a month, while those of the 95th percentile use up to 180 litres of petrol a month. Those within the 99th percentile are recorded to use up to 300 litres a month, which is the quota set.

Citing two cars and one motorcycle as examples the 300 litre quota will cover 203 km of use in a Proton Saga (6.7 litres per 100 km as claimed by the manufacturer), 340 km daily in a Perodua Axia (4.0 litres per 100 km claimed) and 670 km daily on a Yamaha 135LC.

On Monday, the second finance minister had said that 300 litres of petrol is sufficient for daily use, as this would provide for around 170 km of daily commuting in cars. “If someone lives in Seremban and works in Kuala Lumpur or Putrajaya, it falls within the 170 km we estimated,” Amir Hamzah said.

Users such as e-hailing drivers are exempt from the 300 litre quota for RON 95 petrol at the price of RM1.99 per litre, however the government will be taking steps to verify the eligibility of those who require more than 300 litres of petrol a month to curb misuse.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 
 

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