Ministry to run pilot test first before implementing petrol subsidy

GEORGE TOWN: The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) is expected to carry out a pilot test first before official implementation of the targeted petrol subsidy in the second quarter of next year.

Its minister, Datuk Seri Saifuddin Nasution Ismail, said the test was crucial to ensure the new mechanism for the implementation of subsidised petrol to run smoothly at all petrol stations.

“We have already prepared a request for proposal (RFP) for service providers to formulate a new system, after which we will conduct a pilot test, most likely in the first quarter of next year,” he told reporters after attending the Sekolah Kebangsaan Sungai Nibong Student Excellence Award ceremony yesterday.

Saifuddin Nasution said the ministry was currently in the midst of discussing and reviewing several aspects of the pilot test to avoid any technical glitches during its implementation at all petrol stations.

“Recently, Finance Minister Lim Guan Eng and I discussed several matters regarding subsidised petrol and we agreed that the mechanism used for the implementation must be smooth and without glitches,” he said.

He said the government also keen to implement the targeted petrol subsidy as planned in the second quarter of next year.

At the tabling of the 2019 Budget Lim announced the introduction of a targeted petrol subsidy for owners of cars with a capacity of 1,500cc and below and motorcycles of 125cc and below.

Through this mechanism, the government will provide a petrol subsidy of 30 sen a litre for RON95 petrol. However, the subsidy is limited to 100 litres a month for cars and for motorcycles, 40 litres a month. - Bernama