KUALA LUMPUR, Nov 2 — In its revised fuel subsidy system, Putrajaya will offer a cheaper price for RON95 petrol to cars with an engine capacity of below 1,500cc and motorcycles with a capacity below 125cc starting the second quarter of 2019.

Eligible cars can receive the subsidy of up to 100 litres per month, and 40 litres per month for eligible motorcycles, Finance Minister Lim Guan Eng announced while tabling Budget 2019 today.

The allocation of RM2 billion will benefit four million car users and 2.6 million bikers.

“The Pakatan Harapan manifesto has promised to provide targeted fuel subsidy to individual car owners with an engine capacity of 1,300cc or less and motorcycle owners of 125cc or less.

“However, the Government has decided to improve on our promise,” Lim said.

Owners with multiple cars will not receive this benefit, Lim said but did not elaborate on how this would be enforced.

Other vehicles will pay fuel pump price based on Automatic Price Mechanism (APM), a managed-float system.

“This new scheme will also ensure that leakages arising from fuel price arbitrage and cross-border smuggling will be stopped,” Lim said.