KUALA LUMPUR: The targeted fuel subsidy programme proposed by the previous Pakatan Harapan government has been shelved.
The Domestic Trade and Consumer Affairs Deputy Minister Datuk Rosol Wahid said the government decided not to carry out the programme after taking into account the difference in petrol prices between the peninsula and East Malaysia.
He said a meeting was held between his ministry and the Finance Ministry and the decision was made during the discussion on July 9.
"We had a meeting to discuss the direction of the petrol subsidy programme (PSP), and we decided not to continue with it.
"The Finance Ministry will prepare a memorandum to the Cabinet to finalise the government's stance on PSP," he said in reply to Shaharizukirnain Abd Kadir (PAS-Setiu) who asked for the new date on the implementation of the PSP.
Rosol said the government also wanted to avoid any misunderstanding with those in Sabah, Sarawak and Labuan as the PSP would only be applicable to those residing in the peninsula.
He also said under PSP those categorised in the M40 group would only enjoy the subsidised petrol price when they refuel at the petrol stations as they would be given a petrol subsidy card.
"This can also lead to some doubts among the rakyat on the transparency in awarding this subsidy," he said.
The PSP was mooted by the previous Pakatan-led administration.
The PSP was supposed to be implemented in Peninsular Malaysia, which would see RON95 and diesel retail prices being gradually floated according to market prices.
The government had allocated RM2.4bil for the PSP, targeting eight million people to benefit from the programme.
However, the programme never kicked off.
