KUALA LUMPUR: The Perikatan Nasional government has decided against proceeding with the petrol subsidy programme (PSP) announced by the previous administration.
Deputy Domestic Trade and Consumer Affairs Minister Rosol Wahid told the Dewan Rakyat today that his ministry along with the finance ministry had decided not to implement the programme.
“On July 9, the two ministries had a meeting on the PSP and decided that we would not implement it,” he said.
He added that the matter would be brought to the Cabinet for a final decision.
The PSP was a targeted fuel subsidy initiative for the B40 and M40 groups. It was announced by the Pakatan Harapan government but its implementation was delayed.
Rosol, who was responding to Shaharizukirnain Abd Kadir (PAS-Setiu) about the PSP, said one of the reasons they had decided against the PSP was to avoid misunderstanding as the programme would only involve those in Peninsula Malaysia and not in Sabah, Sarawak and Labuan.
“We also want to avoid a large gap in prices between East and West Malaysia,” he said.
The PSP, announced in October, was slated to take effect from Jan 1 this year.
It would have applied to the recipients of Cost of Living Aid, those with motorcycles with engines under 150cc and cars with engines under 1,600cc, or motorcycles over seven years old and cars over 10.
The subsidies were to be credited to eligible recipients every four months.
The price of RON95 petrol would have been floated in the peninsula with adjustments made in stages, while petrol prices would be capped at RM2.08 in Sabah, Sarawak and Labuan.
Rosol also said the M40 group would have needed a special card to enjoy the subsidies, which could lead to doubts among the people on the disbursement of subsidies.
He added that the government would take an alternative approach to helping the people where subsidies are concerned.