PM: New petrol subsidy for only one car per person in B40 bracket


KUALA LUMPUR: The government’s new petrol subsidy scheme only allows for one car per individual in the B40 group, says Tun Dr Mahathir Mohamad.

The Prime Minister said the decision was made after a study by the government found that some individuals in the B40 group owned up to six cars.

"That is why we will only allow the subsidy for one car only. We are not giving subsidies to the rich as well, ” he added.

Dr Mahathir claimed that the previous subsidy scheme had even benefited those who were rich enough to drive a Rolls-Royce.

“Some driving a Rolls-Royce had subsidies. We cannot support this. That is why only owners of cars below 1,600cc will be eligible for subsidy and the subsidy is only for those in the B40 group with only one car, not more. This is to ensure that the aid reaches those who really need assistance. Not to those who own up to two or three Rolls-Royce, but still obtain government subsidy, ” he said.

Under the new petrol subsidy scheme, which takes effect in January next year, the price of RON95 will float and eligible recipients will receive between RM48 (motorcycle) and RM120 (car) every four months.

The targeted subsidy scheme will only be given to car and motorcycle owners based in peninsular Malaysia who are also recipients of the cost of living aid, Bantuan Sara Hidup.

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 motorcycle owners, the subsidy is only given to those with engines of 150cc and below or seven-year-old bikes or older above 150cc.

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, as announced by Datuk Seri Saifuddin Nasution Ismail on Monday (Oct 7).

The Domestic Trade and Consumer Affairs Minister said 2.8 million people will benefit from the subsidy scheme, which will cost the government about RM65.4mil a month.

Related stories:

Too early to tell if RON95 price float will cause inflation, says Saifuddin

‘Consumers must be ready to pay higher for RON95’

RON95 price to be floated


   

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