PETALING JAYA: Malaysians in the bottom 40 per cent (B40) category who own cars and motorcycles not exceeding 1,500cc and 125cc engine capacities respectively, will get a subsidy card to buy RON95 petrol.
Finance Minister Lim Guan Eng, in confirming a New Straits Times report on Sunday on the subsidy card system for subsidised RON95 petrol, said it would be managed by the Domestic Trade, Cooperatives and Consumerism Ministry under Datuk Saifuddin Nasution Ismail.
“The Finance Ministry will channel the money. All will be decided by him (Saifuddin). An open tender for the implementation of the system will be carried out by the Finance Ministry. For more details, it is best to ask Saifuddin,” Lim said after appearing as a guest on 8TV Mandarin news at Sri Pentas in Bandar Utama here on Thursday.
Saifuddin said he had attended a meeting on the petrol subsidy and subsidy card system at the Finance Ministry on Thursday.
He said his ministry had not made a decision on which authority or agency would be tasked to manage the subsidy card system.
“We need to detail the implementation mechanism.
“The consensus (was that the) subsidy will not be in the form of cash. We will explore using the card or other methods after the tender is opened,” Saifuddin said.
On Sunday, the NST reported that those who own one car powered by an engine of no more than 1,500cc may be issued with a subsidy card that will allow them to buy RON95 petrol.
Industry players said the system could largely mirror the one used in the management of subsidised diesel.
Lim had, at the tabling of Pakatan Harapan’s maiden Budget in Parliament on Nov 2, announced that the government planned to provide a subsidy of 30 sen per litre of RON95 petrol for up to 100 litres a month for cars with an engine capacity of less than 1,500cc, and 40 litres per month for motorcycles up to 125cc. The subsidy, however, does not cover owners of multiple vehicles.
The NST further reported that those eligible might have to sign up and register their car or motorcycle details with a petrol company of their choice. Those eligible will get a subsidy card preloaded with 100 litres worth of subsidised RON95 petrol, an industry source said, adding that it was possible for cardholders to carry the balance forward.
It is understood that the Road Transport Department will handle part of the checks, including the verification of the applicant’s eligibility based on the criteria set by Putrajaya.
RM2 billion has been allocated for the programme, which is expected to benefit four million car owners and 2.6 million motorcycle owners.
Industry players said an average of 1.2 billion litres of RON95 petrol was sold every month and that a RM2 billion allocation (for half a year) would subsidise 6.6 billion litres of petrol.
At the Sri Pentas interview, Lim said the government was weighing the benefits (of the subsidy), so that it could be expanded to middle-class Malaysians who own vehicles with 1,500cc engines or lower.