Gov't finalising method on implementing fuel subsidy
PARLIAMENT | Putrajaya is finalising the best method to implement the targeted fuel subsidy in order to prevent any chaotic situations upon its rollout, Saifuddin Nasution Ismail said today.
The domestic trade and consumer affairs minister noted that two options are being considered – either the amount being credited into the bank accounts of recipients, or the introduction of a petrol card...
PARLIAMENT | Putrajaya is finalising the best method to implement the targeted fuel subsidy in order to prevent any chaotic situations upon its rollout, Saifuddin Nasution Ismail said today.
The domestic trade and consumer affairs minister noted that two options are being considered – either the amount being credited into the bank accounts of recipients or the introduction of a petrol card.
For the first option, the government will base it on the distribution of Cost of Living Aid (BSH), he told Dewan Rakyat during the question-and-answer session.
The minister noted, however, that 10 percent of BSH recipients do not have bank accounts.
At present, BSH aid is channelled into the bank accounts of recipients. Those who do not possess accounts collect the funds from the bank upon receiving a letter.
As for the second option, Saifuddin noted that a petrol card would enable his ministry to track recipients' spending patterns.
He added that this data would then allow the ministry to widen the scope of the subsidy.
Saifuddin also stressed that the government has no plan to compensate petrol dealers.
"The ministry is of the view that subsidies should not be given to petrol dealers, because a targeted subsidy means that the fund should be channelled directly to recipients.
Putrajaya will allocate RM2 billion to implement the petrol subsidy in the second half of the year.
Owners of cars under 1,500cc and motorcycles under 125cc are entitled to the subsidy.
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