PUTRAJAYA, Oct 7 -- The Targeted Fuel Subsidy Scheme will be implemented on Jan 1, 2020, said Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail.
He said through the scheme, the government will channel cash aid which will be credited directly into the accounts of the recipients once every four months.
"The subsidy rate is RM30 a month for cars and RM12 a month for motorcycles, “ he told a media conference on the scheme here today.
It is estimated that 2.9 million recipients will benefit from the scheme.
Saifuddin Nasution said the retail price of RON 95 will be floated gradually from Jan 1 so as not to burden consumers.
With subsidies no longer across the board, he said, only the targeted groups will be eligible for subsidy namely Malaysians in the lower income bracket who are badly in need of the assistance.
He said the scheme will cost the government RM65.4 million a month and that the first payment of the cash aid would be made in April 2020.
"The criteria for receiving the PSP (Malay acronym for the scheme) is that the person must be a recipient of Bantuan Sara Hidup (BSH) in Peninsular Malaysia, who owns the vehicle in his or her own name and having a valid road tax,” he said.
Elaborating further, Saifuddin Nasution said the PSP was only applicable to cars that were 1600 cc and below and if above 1600 cc, must be 10 years old and more .
As for motorcycles, he said, they must be 150 cc and below but if more than 150 cc, they must be seven years old or more.
"Individuals who own more than one vehicle are only eligible to receive subsidy for one only, according to the highest rate,’he said.
For citizens in Sabah, Sarawak and Labuan, Saifuddin Nasution said they will still enjoy subsidy across the board with the retail price of RON95 capped at RM2.08 a litre.
The government took into consideration their need to have higher capacity and diesel powered vehicles, he said.
BSH recipients can check their eligibility for subsidy at the website psp.kpdnhep.gov.my from Oct 15.
"For those whose names are not in the list of recipients but feel they qualify based on the criteria stated, they can make an appeal at the same website from Oct 15,”he added.
Asked if PSP recipients would continue to enjoy the subsidy if world oil prices dropped,Saifuddin Nasution said : "If oil prices stabilise in January and February but drop drastically in March and April, the PSP payments will still be implemented in April."
If world oil prices continued to drop, he said the government would discuss the matter further.
Asked if the M40 (middle income group) will be considered for the PSP in future, he said : "If you ask what is on my mind, I would love to expand PSP to M40, I will raise this in the next Cabinet meeting."
Asked about the people's worries about price hikes because of higher fuel prices with the introduction of the PSP, Saifuddin Nasution said 2,300 officers would be monitoring the situation to prevent this.
"The public can make complaints to my ministry via 1800-886-800, smartphone application EzADU, the e-aduan portal and Whatsapp message to 019-2794 317 or its nearest of office,” he added.