Pilot project before petrol subsidy carried out
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