KUALA LUMPUR: The government will take the necessary measures to adjust the targeted fuel subsidy rate as well as consider subsidising the price of RON95 if the global crude oil price shoots up exorbitantly.
Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said that when the targeted fuel subsidy programme was decided, it was done based on a predicted global oil price of between US$50 and US$60 per barrel over the next five years.
“As such, we made our decisions based on this indicator, and we decided that the best time to introduce this targeted fuel subsidy was in January 2020.
“However, if in the future there is a shift in the global political climate that leads to the price of crude oil to skyrocket, then of course the government will make adjustments at that very moment,” he told the Dewan Rakyat here, today.
Saifuddin was responding to a question from Kelvin Yii (PH-Bandar Kuching) on what measures would be taken by the government should petrol prices shoot up.
Finance Minister Lim Guan Eng had last Friday, when tabling the 2020 Budget, announced that the subsidy programme would see eligible recipients of Bantuan Sara Hidup (BSH) be given RM30 and RM12 each month for car and motorcycle owners, respectively.
In addition, non-BSH recipients who own not more than two cars (1,600cc and below) or motorcycles (150cc and below) aged over 10 years old may also receive the assistance through a special Kad95, with a discount of 30 sen per litre limited to 100 litres per month for cars or 40 litres per month for motorcycles
A total of 8 million Malaysians are expected to benefit from the targeted fuel subsidy programme.
On concerns that the use of Kad95 could lead to long queues at petrol stations, Saifuddin acknowledged that based on international best practices, the use of cash is still regarded as the best payment option at petrol stations.
He said his ministry would discuss this further with the Finance Ministry to ensure the rollout and implementation of Kad95 is smooth.
Saifuddin added that the introduction of a targeted subsidy was necessary to ensure only those who qualified would benefit, as well as to prevent foreigners from enjoying the benefit as is the case currently under the blanket subsidy for RON95.
