Fuel subsidy scheme shelved

  • Nation
  • Thursday, 30 Jul 2020


THE targeted fuel subsidy programme that was introduced by the previous administration has been shelved, says Datuk Rosol Wahid.

The Deputy Domestic Trade and Consumer Affairs Minister said the government decided not to implement the programme after taking into account the difference in petrol prices between Peninsular and East Malaysia.

He said a meeting was held between his ministry and the Finance Ministry and that the decision was made during the discussion on July 9.

“We had a meeting to discuss the direction of the petrol subsidy programme (PSP) and decided not to continue the initiative.

“The Finance Ministry will prepare a memorandum to the Cabinet to finalise the government’s stand on PSP,” he said in his reply to Shaharizukirnain Abd Kadir (PAS-Setiu) who asked on the new date on the implementation of the PSP.

Rosol said the government wanted to avoid any misunderstanding with those in Sabah, Sarawak and Labuan as the PSP was only applicable to those residing in the peninsula.

He also said those categorised under the M40 group would only enjoy the subsidised petrol price when they pump fuel at petrol stations with petrol subsidy cards.

“This can lead to some doubts among the people on the transparency in awarding this subsidy,” he said.

The PSP was mooted by the previous Pakatan Harapan-led administration.

According to previous reports, a sum of RM2.4bil was set aside for the implementation of the PSP, targeting to benefit some eight million people.

However, the programme did not kick off.

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