He said the mechanism would be implemented in stages to allow the public to prepare itself as some would be eligible to receive the subsidy while others would not.

“We understand that the fuel price is sensitive to the consumer price index. We want consumers to be prepared, which is why we want to roll it out in stages,” he said in the Dewan Rakyat.

Azrina Surip (PH-Merbok) had asked the ministry about the outcome of engagements with the public on the targeted subsidy. Ahmad Maslan (BN-Pontian) meanwhile asked about the total subsidy for RON95 given before the new mechanism kicks in. He also asked if the subsidy would be given to fishermen and those using generators in Sabah and Sarawak.

Saifuddin said Malaysians used 1.2 billion litres of fuel each month, adding that 90% used RON95.

“For the calculations, multiply 90% of 1.2 billion with the auto price mechanism.

“When the federal budget was announced by Finance Minister Lim Guan Eng, fuel was at US$80 per barrel. Now it is US$64,” he said, adding that the government would take this into consideration.

He also said he had held several engagements with the public, including with Bank Negara Malaysia, the finance ministry, oil companies, fuel operators and NGOs on ways to implement the fuel mechanism.

Under Budget 2019, motorists using cars with engine capacities of 1,500cc and below, or motorcycles with engine capacities of 125cc and below, will enjoy RON95 petrol at a lower price.

Eligible drivers can receive subsidies for up to 100 litres per month for cars and 40 litres per month for motorcycles.