Pi­lot project be­fore petrol sub­sidy car­ried out

New Straits Times - - NEWS / STORY OF THE DAY -

GE­ORGE TOWN: The Do­mes­tic Trade and Con­sumer Af­fairs Min­istry is ex­pected to run a pi­lot project be­fore the official im­ple­men­ta­tion of the tar­geted petrol sub­sidy in the sec­ond quar­ter of next year.

Its min­is­ter, Datuk Seri Sai­fud­din Na­su­tion Is­mail, said this was to en­sure that the new sys­tem used to man­age the sub­sidised petrol would run seam­lessly at petrol sta­tions.

“At the mo­ment, we are con­sid­er­ing the need for a pi­lot project. This is to en­sure that when we use the new sys­tem, we can iden­tify glitches and make ad­just­ments be­fore it is used at petrol sta­tions.

“We are at the Re­quest for Pro­posal (RFP) stage for the ser­vice providers to cre­ate the new sys­tem.

“Once that is done, we will do the pi­lot project, most likely in the first quar­ter of next year,” he said af­ter at­tend­ing SK Sun­gai Ni­bong’s Stu­dent Ex­cel­lence Award cer­e­mony here yes­ter­day.

Last week, Fi­nance Min­is­ter Lim Guan Eng, in tabling the 2019 Bud­get in Par­lia­ment, said car own­ers from the Bot­tom 40 per cent group would re­ceive RON95 petrol sub­si­dies lim­ited to 100 litres, while mo­tor­cy­cle own­ers would get 40 litres.

The govern­ment plans to pro­vide a sub­sidy of 30 sen per litre of RON95 petrol for up to 100 litres a month for cars with an engine ca­pac­ity of less than 1,500cc, and 40 litres per month for mo­tor­cy­cles with en­gines of up to 125cc.

RM2 bil­lion will be al­lo­cated to the ini­tia­tive, which is ex­pected to ben­e­fit four mil­lion car own­ers and 2.6 mil­lion mo­tor­cy­cle own­ers.

Lim also said the govern­ment would re-float the RON95 petrol price in the mar­ket, via the Au­to­matic Price Mech­a­nism, to in­crease ef­fi­ciency in the use of re­sources.

Sai­fud­din said the min­istry would look into re­quests for the sub­sidy to be ex­panded to the lower Mid­dle 40 per cent group.

“For now, we will see the level of sav­ings we can make with the new sys­tem. If it is rea­son­able, then we will con­sider it (to in­clude lower M40 group).

“What is clear is that only those el­i­gi­ble will get it. There will not be lux­ury cars.”

He said once mo­torists had used up the RON95 monthly limit, they would need to pay for petrol at the nor­mal price.

Datuk Seri Sai­fud­din Na­su­tion Is­mail

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