Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail said the vehicles' age and horsepower, as well as the owners' income, would be taken into consideration. (BERNAMA)

KULIM: Owners of cars and motorcycles with 1,500cc and 125cc engines, respectively, must fulfil several criteria to be eligible for the RON95 petrol subsidy of 30 sen per litre.

Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail said the vehicles' age and horsepower, as well as the owners' income, would be taken into consideration.

He also said the government would ensure that the B40 income earners would benefit from the subsidy mechanism, which is expected to begin in the second quarter of 2019.

"The eligible category depends on the vehicle owner's income, the vehicle's horsepower as well as its age.

"So, we need accurate information from the Road Transport Department (JPJ) to identify the number of owners of old vehicles," he said during a press conference here today.

Saifuddin also said his ministry will conduct a meeting with Finance Ministry officials on Nov 8 to identify the best method to implement the new subsidy mechanism.

"We also encourage the people to discuss and debate the matter. The views of the people, cabinet, oil companies and consumer associations will be taken into consideration.

"We have four more months to provide a win-win situation for all parties," he added.

Yesterday, Finance Minister Lim Guan Eng, in tabling the 2019 Budget in Parliament, said car owners would receive RON95 petrol subsidies limited to 100 litres, while motorcycle owners would get 40 litres.

RM2 billion will be allocated to the new initiative, which is expected to benefit around 4 million car owners and 2.6 million motorcycle owners.

Lim had also said the government would re-float the RON95 petrol price in the market via the Automatic Price Mechanism, in order to increase efficiency in the use of resources, among others.

Pakatan Harapan, in its manifesto, had pledged to give targeted petrol subsidies to private car owners with car engines of 1,300cc and below and to motorcycle owners with machines with 125cc engines, at 100 litres a month.