Wednesday, October 23

Saifuddin: No targeted fuel subsidy for Sarawak, Sabah and Labuan; RON95 to remain at RM2.08

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Datuk Seri Saifuddin Nasution Ismail – Bernama file photo

KUCHING: The people of Sarawak, Sabah and Labuan will not benefit from the targeted fuel subsidy scheme which will come into effect on January 1, 2020, Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail announced today.

“The policy decision that we have made for Sabah, Sarawak and the Federal Territory of Labuan is that they will retain the (RON95) fuel price of RM2.08. Therefore, they will not receive the targeted fuel subsidy because they enjoy the price of RM2.08,” he told a special press conference in Putrajaya.

Earlier, Saifuddin announced that the targeted subsidy scheme would only benefit car and motorcycle owners based in Peninsular Malaysia who are also recipients of the Bantuan Sara Hidup (BSH).

He said that for cars, only those with 1,600cc engines and below or vehicles over 10 years old with engines larger than 1,600cc are eligible, and for motorcycles, only those with engines of 150cc and below, or bikes that are above 150cc but are more than seven years old are eligible.

He said through the scheme, the government will channel cash aid which will be credited directly into the accounts of the recipients once every four months.

“The subsidy rate is RM30 a month for cars and RM12 a month for motorcycles, “ he said, adding that fuel prices in the peninsular would be on a gradual float system.

It is estimated that 2.9 million people will benefit from the scheme, which will cost the government RM65.4 million a month.