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The government announced a new targeted fuel subsidy scheme that is expected to begin in January 2020.

The new petrol subsidy mechanism outlined by the Domestic Trade and Consumer Affairs Ministry (KPDNHEP) will gradually float the price of RON95 petrol in Peninsular Malaysia.

This means that the retail price for RON95 will be set by the cabinet based on global market prices.

For those living in Borneo, the price of RON95 will still be capped at RM2.08 per litre.

So who exactly benefits?

Under the new petrol subsidy mechanism, ONLY vehicle owners on Bantuan Sara Hidup (BHS) will be able to access subsidised petrol

Recipient’s household income must not be more than RM4,000.

Drivers and riders must own a private vehicle that is registered under their name and have a valid driving license to qualify.

To receive the subsidy vehicle owners must comply with the following criteria;

So how will it work?

Those who qualify for the subsidy will be paid a fixed amount of money depending on the type and number of vehicles owned.

Car owners will receive a total of RM30 while motorcycle owners will receive RM12 monthly.

Payments will be made every quarter (4 months) and be transferred directly to BSH account holders.

If a qualified individual owns more than one vehicle, they would only receive RM30 per month.

Check out the chart below for details;


According to the government, the new program functions as an equitable redistribution of national subsidies based on a data-driven policy.

The program is designed to target and benefit only the needy, underprivileged and the disabled (OKU).

While the current fuel subsidy is open to all citizens, the new scheme is expected to only benefit some 2 million Malaysians.

Data from the Road Transport Department (JPJ) puts 11 million cars and 12 million motorcycles on the road as of 2015.

This would mean that starting 2020, vehicle owners will probably pay more for fueling up RON95.

If you are looking for more information on the new fuel subsidy program, you can check it out at KPDNHEP official website HERE.

So what do you think about the upcoming petrol subsidy scheme? Share us your thoughts on our Facebook, Twitter and Instagram.

(https://www.malaysiakini.com/news/494759)
(RON 95 subsidy scheme details announced – only for BSH recipients, cars below 1.6L, bikes under 150 cc)
(PROGRAM SUBSIDI PETROL (PSP))
(Total Motor Vehicles by Type and State, Malaysia, 2015)

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