RON 95 petrol subsidy scheme – details announced


The government has finally revealed details and the mechanism of its targeted fuel subsidy for RON 95 petrol, the scheme being outlined by domestic trade and consumer affairs (KPDNHEP) minister Datuk Seri Saifuddin Nasution Ismail earlier today.

Benefits of the scheme, which is slated to begin in January next year, will only be provided to eligible recipients based in Peninsular Malaysia, as The Star reports. The subsidy scheme will not incorporate Sabah, Sarawak and Labuan, but the government says that the price of RON 95 in the two states and Labuan will remain capped at RM2.08 per litre.

It was also announced that the current price cap of RM2.08 per litre for RON 95 will be removed and the fuel floated once the subsidy scheme begins.

Details of the scheme are as follows:The subsidy rate will be RM30 a month for car owners, and RM12 a month for motorcycle owners.The government will reimburse the subsidy once every four months, so car owners will receive RM120 and motorcycle owners will receive RM48 every four months, with the government crediting the sum directly to the recipient’s registered bank account.Only those who are entitled for cost of living aid (BSH) assistance, with their names listed in the BSH database for receiving such allowances will be able to receive the new petrol subsidy.The household income of the recipient must not be more than RM4,000 per month.The subsidy will only be given to car/motorcycle owners, and they must not own more than two cars and two motorcycles at the same time, respectively.For cars, the pre-requisite is that the engine displacement must be:
– below 1,600 cc
– or, above 1,600 cc, but only for vehicles over 10 years oldFor motorcycles, the pre-requisite is that the engine displacement must be:
– below 150cc
– or, above 150cc, but only for motorcycles over seven years old

Saifuddin said that a total of 2.8 million people are expected to benefit from the subsidy scheme, which will cost the government about RM65.4 million a month. This is lower than the average of RM133 million it currently spends each week in fuel subsidies.


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