Govt delays implementation of targeted fuel subsidy programme

KUALA LUMPUR: The government has delayed the implementation of the targeted fuel subsidy programme (PSP) until further notice, says Datuk Seri Saifuddin Nasution Ismail.

The Domestic Trade and Consumer Affairs Minister said this decision to delay the PSP from being implemented nationwide starting next January was made during a Cabinet meeting on Dec 18.

“The Cabinet meeting on Dec 18 has decided that the implementation of the PSP which is scheduled to begin on January 2020 will not go ahead until a time that will be announced later, ” he said.

Saifuddin said the postponement was to allow more explanations to be conducted in order to better prepare Malaysians to accept the PSP.

He added that the registration process of recipients under the M40 group will be conducted by the Finance Ministry.

“While waiting for the confirmation of the PSP implementation to be announced, the people can continue to enjoy current petrol prices based on the present system, ” he said in a statement on Monday (Dec 30).

The RM2.2bil PSP, which is expected to benefit more than eight million motorists from the low-income B40 and middle-income M40 groups, was announced by the Pakatan Harapan government on Oct 8.

Under the PSP, individuals who own not more than two cars and two motorcycles are eligible to receive PSP for one vehicle.

The qualifying criteria is for passenger cars with 1,600cc engine and below or 1,600cc and above which is more than 10 years old.

For motorcycles, it must be 150cc and below; if it is over 150cc, it must be at least seven years old. No luxury vehicles are qualified to receive the targeted subsidies

For eligible recipients of Bantuan Sara Hidup (BSH), the petrol subsidy receivable will be RM30 per month for car owners and RM12 per month for motorcycle owners.