14th January 2020 - 2 min read
Individuals from the M40 category can begin registering for the petrol subsidy programme (PSP) in the second quarter of 2020, said Domestic Trade and Consumer Affairs Minister (KPDNHEP), Datuk Seri Saifuddin Nasution Ismail.
Saifuddin also said that his ministry and the Ministry of Finance are still in the midst of deciding if the Kad95 or cash would be a better method to dispense the subsidies to the eligible parties. It had initially been proposed that those eligible from the M40 category would receive a petrol card called Kad95 to grant them the petrol subsidy.
“The data for the recipients has been completed and currently the two ministries are discussing on the method of distribution. The government is looking for a seamless integration where consumers will not feel any difference when purchasing petrol once the PSP is implemented,” noted Saifuddin.
“In conducting the study for B40, KPDNHEP felt that paying cash would be more efficient as compared with other methods, so the deferment of the PSP has enabled both ministries to come to the same decision,” Saifuddin added. The PSP for B40 recipients was slated to begin on 1 January 2020, but KPDNHEP decided to delay the implementation at the last minute, citing the need for more time to inform and prepare the public for the scheme.
The PSP was originally announced in November 2018 during the tabling of Budget 2019, aimed at helping the low-income B40 group. It was only revealed that the PSP would also be expanded to include eligible Malaysians from the M40 group during the tabling of Budget 2020 in October 2019.
Until KPDNHEP and the Ministry of Finance come to a decision on how they would like to carry out the PSP, Malaysians will continue to pay for their petrol according to the current pricing, where RON95 is capped at RM2.08, while RON97 remains floated.
(Source: Malay Mail, Paul Tan’s Automotive News)
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world