A New Targeted Petrol Subsidy Mechanism Will Be Announced In Early 2019
The government has also spent RM1.667 billion to subsidise petrol prices between May and June.
By Alyssa J. Oon — 13 Sep 2018, 02:41 PM
Deputy Finance Minister Datuk Amiruddin Hamzah said a new targeted fuel subsidy mechanism is expected to be announced early next year
Amiruddin made the announcement after launching a World Bank report titled "Malaysia's Digital Economy: A New Driver of Development" yesterday, 12 September.
"We are working hard towards it and we hope that we can make the announcement early next year. The sooner we get it finalised, the sooner we can get it launched," he said, as reported by Bernama.
The subsidy will be given to motorists with 125cc and below motorcycles and 1,300cc and below cars
Unlike the current blanket fuel subsidy, the new targeted fuel subsidy will be provided "at an appropriate rate every month" and "according to a quota that would be determined for eligible groups," Amiruddin told theSun.
The new subsidy will benefit those who belong to the bottom 40% household income group (B40) and owners of 125cc and below motorcycles and 1,300cc and below cars.
Amiruddin also denied that the Pakatan Harapan manifesto included a pledge to reduce petrol prices to RM1.50 per litre
Senator Datuk Ng Chiang Chin had raised the matter of fuel subsidies in Dewan Negara yesterday, 12 September, based on a purported plan by the government to reduce the petrol price to RM1.50, "as promised by Pakatan Harapan in its election manifesto".
Amiruddin denied the inclusion of such a promise in the manifesto and added that there are no plans to reduce the petrol price to RM1.50 per litre unless the crude oil price drops to that level, reported EdgeProp.
Between May and July, the government spent RM1.667 billion on petrol subsidies
"At the moment, the government still maintains the retail price of RON95 and diesel at RM2.20 and RM2.18 respectively, although the market value is much higher than that," Amiruddin told Dewan Negara.
Meanwhile, the price of RON97 was left to float according to market value on a weekly basis as it is considered a premium product used by those among the higher class, Amiruddin told theSun.
