KUALA LUMPUR, March 13 — The government has not decided on the petrol subsidy mechanism promised in the Pakatan Harapan manifesto, Domestic Trade and Consumer Affairs Deputy Minister Chong Chieng Jen told the Dewan Rakyat today.
He also said the Finance Ministry has called for proposals for suitable measures to implement and monitor the subsidy.
“Earlier I mentioned that on the mechanisms which will be enforced, we did take cognisance of those in towns and rural areas. However, a final decision has not been decided as to what mechanisms to be enforced.
“The Ministry of Finance (MOF) has opened a tender for any parties who wish to suggest as to what is the best mechanism to implement this targeted subsidy programme.
“Therefore, we are still considering and evaluating the suggestions made to MOF and the Domestic Trade and Consumer Affairs Ministry,” he added.
Chong was responding to an additional question by Jempol MP Datuk Salim Sharif during Question Time today, who had asked as to the criteria by which one is deemed a suitable recipient of the subsidy, the number of vehicles allowed for those who qualify, and if the programme will be implemented nationwide.
The subsidy is intended for the RON95 petrol at rural communities located in the remote areas and far from the petrol stations.
In November last year, Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said that the government will begin its targeted fuel subsidy mechanism for lower engine capacity vehicles using RON95 grade fuel in stages.
Saifuddin told the Dewan Rakyat during Question Time that the mechanism will start from the second quarter of 2019 and it is implemented in stages and not everyone will be eligible to receive the subsidy.
While tabling Budget 2019, Finance Minister Lim Guan Eng had announced that cars below 1,500cc and motorcycles below 125cc are eligible for a 30 sen subsidy on RON95 petrol.
Eligible car owners can receive up to 100 litres of fuel each month while motorcyclists can receive up to 40 litres a month.
