Mon. Nov 18th, 2019

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Five million M40 fuel subsidy recipients identified

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The government has identified another five million M40 middle income earners as recipients of the petrol subsidy programme (PSP), but these will be tracked ahead of their inclusion into the programme, which begins next year.

According to domestic trade and consumer affairs (KPDNHEP) minister Datuk Seri Saifuddin Nasution Ismail, his ministry will discuss with the finance ministry on a special mechanism to collect data on the M40 group recipients. He added that the data of three million PSP recipients from the B40 income group has been recorded, but registration for B40 recipients was still open, Bernama reports.

Earlier this month, finance minister Lim Guan Eng said that a study on the PSP mechanism for the M40 group was underway, and the results are expected to be ready by March 2020. The approach for the M40 group will involve the “Kad95” system that was announced during the tabling of Budget 2020.

The “Kad95” will be issued to those in which the household income is below RM4,000, but are not eligible for BSH for various reasons. Lim had said that Kad95 system would be implemented progressively in the first quarter of 2020.

Under the scheme, motorists who are not cost of living aid (BSH) recipients will be able to enjoy fuel subsidy of 30 sen per litre on RON 95 fuel, limited to 100 litres per month for cars and 40 litres per month for motorcycles. This translates to a cap of RM30 for cars and RM12 per month for motorcycles, which is the same amount BSH recipients get.

Once the PSP is introduced in Peninsular Malaysia in January 2020, the RM2.08 per litre price cap in place for RON 95 is set to be removed, and its price will be floated. Based on the finance ministry’s latest Automatic Price Mechanism (APM) calculations (for the period of October 26-November 1), RON 95 petrol would be priced at RM2.29 per litre without the price cap.

Five million M40 fuel subsidy recipients identified

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