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Before today, those who are not in the Bantuan Sara Hidup (BSH) net assumed that they will not be eligible for any form of fuel subsidy when Peninsular Malaysia fuel prices are floated gradually in January 2020. However, there was some good news announced by finance minister Lim Guan Eng this afternoon.
Now, there will be another category for the petrol subsidy programme (PSP). A “Kad95” fuel subsidy card for those whose household income are below RM4,000, but are not eligible for BSH for various reasons. Ownership of a Kad 95 will enable one to enjoy fuel subsidy of 30 sen per litre, limited to 100 litres per month for cars and 40 litres per month for motorcycles.
Max this out and you’ll reach a cap of RM30 for cars and RM12 per month for motorcycles, which is the same amount BSH recipients get, although the latter group gets the amount banked in automatically to their accounts every four months (first payment in April 2020).
The Kad95 system will be implemented progressively in the first quarter of 2020, Lim said. More details, such as how to obtain the card, would surely be announced closer to next year. To recap, here are the main points of the PSP:
- The subsidy will only be given to car/motorcycle owners, and is limited to one vehicle per recipient. If a person owns a car and a motorbike, then he/she will receive the higher subsidy, which is for the car. The car or motorcycle must be registered under the recipient’s name.
- The subsidy rate will be capped at RM30 a month for car owners, and RM12 a month for motorcycle owners.
- The government will reimburse the subsidy once every four months, so car owners will receive RM120 and motorcycle owners will receive RM48 every four months. The payment method will see cash being directly credited into the recipient’s registered bank account. The first payment is scheduled for April 2020.
- The household income of the recipient must not be more than RM4,000 per month.
- To qualify, a recipient can only own a maximum of two cars and two motorcycles at any one time in his/her household. See the info-graphic panel above for a clearer picture of what vehicle combination qualifies and what doesn’t.
- For cars, the pre-requisite is that the engine displacement must be:
– 1,600 cc or below
– or above 1,600 cc, but only for cars that are 10 years old and above
- For motorcycles, the pre-requisite is that the engine displacement must be:
– 150 cc and below
– or above 150 cc, but only for motorcycles that are seven years old and above
For the rest of us not covered by the PSP, fuel prices will floated next year, gradually, so be prepared. Based on the finance ministry’s Automatic Price Mechanism (APM) calculations, RON 95 petrol would be priced at RM2.37 per litre for the coming week without the current RM2.08 price cap in place.