KUALA LUMPUR: Individuals who own not more than two cars and two motorcycles are eligible to receive fuel Targeted Subsidy Programme (PSP).
Finance Minister Lim Guan Eng said the PSP was part of the Pakatan Harapan’s promise and starting January 2020, PSP will be launched in Peninsular Malaysia.
The qualifying criteria for the vehicle are:
>> A passenger car with 1,600cc engine capacity and below;
>> Any car above 1,600cc must be more than 10 years old;
>> Whereas, a qualified motorcycle must be 150cc and below;
>> Any motorcycles above 150cc must be more than 7 years old.
Lim added that all luxury vehicles will not be qualified to receive the targeted subsidies.
“This subsidy will be in the form of cash transfer, deposited into the recipient’s bank account every four months,” he said.
On commencement of the fuel subsidy scheme, RON95 and diesel retail prices will be gradually floated.
“This will reduce leakages and cross-border smuggling of subsidised fuel which is estimated to cost the government millions of ringgit. The fuel subsidy will kick-in whenever the RON95 market price determined by the Automatic Pricing Mechanism (APM) is above RM2.08 per litre but no fuel subsidy will be given when the market-determined APM price falls below RM2.08 per litre,” he said.
The government will allocate RM2.2 billion for the proposed scheme which will benefit more than eight million motorists.
Motorists in Sabah and Sarawak will continue to enjoy a fuel price ceiling of RM2.08 per litre for RON95 and RM2.18 per litre for diesel.
“Should the Sabah or Sarawak state government like to participate in the PSP, the Federal Government is ready to accept the request,” said Lim