RON95 price to be floated, petrol subsidies for BSH recipients

By CARSIFU | 7 October 2019

PUTRAJAYA: The government’s new petrol subsidy scheme will float the price of RON95 petrol and see eligible recipients receiving between RM48 (motorcycle owners) and RM120 (car owners) every four months.

The targeted subsidy scheme, which is set to take effect at the start of 2020, will only be given to car and motorcycle owners based in Peninsular Malaysia who are also recipients of the Bantuan Sara Hidup (BSH).

For cars, only those with 1,600cc engines and below or vehicles over 10 years old with engines larger than 1,600cc are eligible.

For Sabah, Sarawak and Labuan, there will be no subsidy scheme but the price of RON95 in the two states and the Federal Territory will be capped at RM2.08, Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail told a special media conference here today.

He said a total of 2.8 million people will benefit from the subsidy scheme, which will cost the government about RM65.4mil a month.

In a reaction to the new scheme, a Sabah party has denounced it as unfair.

Opposition Parti Kerjasama Anak Negeri (Anak Negeri) central committee member Hendrew Sigar said that Saifuddin must justify why the Borneo states, as oil producers, would not be rewarded with fuel subsidy.

He said the fact that Sabah, Sarawak and Labuan will retain the RON95 fuel price of RM2.08 is beside the point.

"The argument that Sabah, Sarawak and FT Labuan are enjoying the price of RM2.08 for RON95 is not acceptable.

"Why stay at RM2.08 if consumers in Sabah Sarawak and Labuan could enjoy more subsidy?" he asked in a statement here today.

He said that it looked scandalous that Sabah, Sarawak and Labuan were denied the benefit of fuel subsidy as these Borneo states are major producers of oil and gas, which collectively brings billions in federal revenue.