No more fuel subsidy for income earners of RM3,900 & above

Chong Chieng Jen

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KUCHING: Fuel subsidies will be lifted for Malaysian households earning more than RM3,900 a month where they will have to pay more for RON95 fuel and diesel once the federal government implements the targeted fuel subsidy plan.

This was disclosed by Domestic Trade and Consumer Affairs Deputy Minister Chong Chieng Jen.

According to him, the plan is meant to benefit the B40 group in the country, which refers to the bottom 40 per cent of households whose monthly income is RM3,900 and below.


“When the general subsidy is done away with and the targeted subsidy implemented, both RON95 and diesel will be available based on the current market price, like the present weekly float system for RON97,” he told The Borneo Post yesterday.

He said the Finance Ministry would be announcing the criteria to determine those eligible for the targeted subsidy.

He said apart from falling in the B40 group category, other requirements would include using vehicles and motorcycles with engine capacities below 1,500cc and 125cc respectively.

“When the targeted subsidy is implemented, there will be no more general subsidy. Which means RON95 will be available at (market price of) RM2.49, and diesel at RM2.39,” Chong was quoted saying.

He said those eligible would be able to enjoy a monthly subsidy of RM30 for vehicles, or 30 sen for every litre of RON95 petrol capped at 100 litres a month, while motorcyclists would receive RM12 a month.

“The funds would be transferred directly to the eligible individual’s bank account,” said Chong, adding that the federal government would only be subsidising the margin.

Once the targeted subsidy comes into effect, the country is expected to save about RM2 billion a year in expenditure, added Chong. — DayakDaily