The price of RON95 will float according to the global market price once the government rolls out its targeted petrol subsidy initiative in January next year
Domestic Trade and Consumerism Minister Datuk Seri Saifuddin Nasution said only Bantuan Sara Hidup (BSH) recipients in Peninsular Malaysia will qualify for the fuel subsidy, according to New Straits Times.
"The government is committed to ensuring that any price increase will be a gradual one so that it will not burden the rakyat," Saifuddin said during the Petrol Subsidy Programme announcement in Putrajaya yesterday, 7 October.
Car owners who are entitled to the petrol subsidy scheme will receive RM120 every four months, while motorcycle owners will get RM48 every four months
According to The Star, cars that are eligible are those with 1,600cc engines and below or if they have engines larger than 1,600cc, cars must be at least 10 years old.
For motorcycle owners, the subsidy will only be given to those with engines of 150cc and below, or motorbikes above 150cc that are at least seven years old.
"For those who have both car and motorcycle, they will get petrol subsidy for whichever is higher," Saifuddin said.
"The subsidy will be paid once every four months and will be banked directly into the recipients' accounts."
In contrast to Peninsular Malaysia, the price of RON95 petrol in Sabah, Sarawak and Labuan will continue to be subsidised and fixed at RM2.08
"It does not cost so much for the government to subsidise RON95 in East Malaysia," Saifuddin explained, adding that there are more diesel car users there.
At present, the price of RON95 is capped at RM2.08 while the price of RON97 is already controlled by a floating price system
"For now, the status quo remains where fuel prices for RON95 will be announced weekly," Saifuddin said.
According to Bernama, it is estimated that 2.9 million people will benefit from the scheme.
Saifuddin also said the public can check whether they were eligible for the subsidy by visiting the ministry's official portal beginning 15 October.