Minister: Government Almost Ready to Introduce New Petrol Subsidies, Waiting for “Right Moment”

The price of petrol is one of the biggest concerns of Malaysians across the country. While the state of public transport is slowly improving, especially with the launch of an expanded MRT/LRT system, most Malaysians still find they have to commute using private vehicles like cars and motorbikes to get to where they need to be – especially if you’re outside the major suburban areas around the Kuala Lumpur city centre.

According to The Star, Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail has said that the government is nearly ready to implement the new petrol subsidies, and is looking for the “right moment” to do so. He said,

“So we are looking to pick the right moment that would bring relief not just regarding the financial impact on the government but also on other stakeholders, such as petrol companies, the petrol dealers and, most importantly, the people.”

Source:  New Straits Times

The new subsidies, which were announced as part of the Budget 2019, will see the owners of cars and motorcycles with engines below 1,500cc and 125cc respectively receiving subsidies for RON95 petrol at 30 sen per litre, limited to 100 litres of petrol for cars and 40 litres for motorcycles per month.

Saifuddin also mentioned that the subsidy plan was formulated after taking into consideration the mechanics and processes involved, and what the price cap would be in relation to global oil prices. The subsidy is expected to benefit more than 4 million car drivers and 2.6 million motorcycle riders.

Last year, after Pakatan Harapan won the 14th General Election, Prime Minister Dr. Mahathir Mohamed announced that the long-missed petrol subsidies Malaysians used to enjoy would be coming back as part of PH’s election manifesto.

Also read: Cap on RON95 Petrol Price May Be Removed After Govt Subsidy Comes Into Effect