Report Fuel Subsidy Delayed Due To Disbursement Method

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The delay in the rollout of the targeted petrol subsidy scheme is due to a lack of data on income groups other than the B40, reports The Malaysian Insight.TMI quoted sources as saying that this lack of data has left Putrajaya unable to finalise a system to disburse payments to the target group
"While the ministry is ready, the government can’t proceed with the subsidy system as it lacks data on the M40 group," said a source
It was earlier reported that the Domestic Trade and Consumer Affairs Ministry's preferred means of distribution would be direct cash payments to the B40, as data for the income group already exist in Bantuan Sara Hidup (BSH) records

This data would be cross-referenced with the Road Transport Department (RTD) database to determine the number of eligible vehicles in each household
Proposed under Budget 2019, the petrol subsidy scheme is only applicable to cars under 1,500cc and motorcycles under 125cc. Cars will be eligible for a subsidy of 30 sen and motorcycles 12 sen per litre of RON95 petrol, limited to two cars and two motorcycles per household
While the ministry wants to pay cash directly to the B40, TMI quoted another source as saying that it was suggested in cabinet that the subsidy for the M40 group be disbursed through a card payment system
"But petrol dealers have not agreed to install an additional card payment systems at the stations," the source said
The implementation of this card system would also be difficult in rural areas, the source added, as villagers tend to buy petrol from provision shops or roadside traders
The government is currently subsidising the price of RON95, while the price of RON97 is floated weekly. - Mkini

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