Chong: Govt yet to finalise RON95 fuel subsidy mechanism


KUALA LUMPUR: The government has yet to finalise the mechanism for the implementation of the targeted RON95 fuel subsidy, says Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen (pic).

He said this when asked on details of the petrol subsidy mechanism, which is slated to be rolled out by the second quarter of the year.

"At the moment, no final decision has been made on the mechanism.

"The Finance Ministry has called for an open tender for parties interested to propose the best mechanism for the implementation of the targeted subsidy," he said when replying a question by Datuk Salim Sharif (BN-Jempol) during Question and Answer Time in Dewan Rakyat on Wednesday (March 13).

At present, Chong said that earlier proposals on how the petrol subsidy should work was also being evaluated.

Earlier, Chong said the government wanted to ensure that only those eligible would benefit from the programme.

He said his ministry was working closely with the Finance Ministry to ensure that the petrol subsidy would not be abused.

"The subsidy system must be simple to use and can be used by all petrol stations throughout the country," he added.

The petrol subsidy was announced by Finance Minister Lim Guan Eng under the 2019 Budget on Nov 2 last year.

Under the programme, owners of cars and motorcycles with 1,500cc and 125cc engines will receive subsidies for RON95 petrol at 30 sen per litre.

The subsidy for car owners will be limited to 100 litres of petrol monthly, while motorcycle owners will get 40 litres monthly.

Some RM2bil has been allocated for the new initiative, which is expected to benefit more than four million car owners and 2.6 million motorcycle owners.

Since the announcement, several proposals have been put forward by consumer groups, including the use of a petrol card to purchase the subsidised petrol.