BATU CAVES: The government is looking for the "right moment" to implement its targeted RON95 fuel subsidy announced during Budget 2019 on Nov 2 last year.
Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said the ministry was close to completing all the preparations needed to implement the targeted fuel subsidy.
"Choosing the right moment is important, and as far as preparation is concern, we are almost there," he said during a press conference on Thursday (May 23).
Saifuddin said the ministry was still trying to decide when to bring the matter up with Cabinet.
He added that the mechanism, the process, as well as the decision on the price cap in relation to global crude oil prices, were some of the details that the ministry had to decide on.
"So we are looking to pick the right moment that would bring relief not just regarding the financial impact on the government but also on other stakeholders, such as petrol companies, the petrol dealers and, most importantly, the people," he said.
The petrol subsidy was announced by Finance Minister Lim Guan Eng under Budget 2019.
Under the programme, owners of cars and motorcycles with engines below 1,500cc and 125cc respectively 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.