Budget 2020: Bornean states can still participate in fuel subsidy programme if they wish

Lim Guan Eng in Parliament. - File photo

By Nigel Edgar

KUCHING, Oct 11: The federal government would be willing to consider accepting the Sarawak government’s request for the Targeted Subsidy Programme (PSP) to be implemented in the state, should the situation arise.

Finance Minister Lim Guan Eng said that although the new subsidy scheme would not be implemented in Sarawak and Sabah next year, the two Bornean states would continue to enjoy the heavily subsidised RON95 and diesel fuel at the current capped price.

“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 governments like to participate in the PSP, the federal government would be ready to accept the request,” he said when tabling the national Budget 2020.

Starting January next year, PSP will be launched in Peninsular Malaysia with two eligible categories.

For eligible recipients of the Bantuan Sara Hidup (BSH), the petrol subsidy receivable would be RM30 per month for car owners and RM12 per month for motorcycle owners, Lim said.

This subsidy would be in the form of cash transfer, deposited into the recipient’s bank account every four months. The first payment would be made in April 2020 for the period January to April 2020, he added.

For all other motorists who are not BSH recipients, Lim said they would be receiving a special Kad95, which would allow them to enjoy the fuel subsidy at a discount of 30 sen per litre, limited to 100 litres per month for cars or 40 litres per month for motorcycles when purchasing RON95 at the petrol station.

“The Kad95 will be implemented progressively during the first quarter of 2020,” he said. — DayakDaily