Opt-in, opt-out option being considered for targeted fuel subsidy

KUALA LUMPUR (Oct 8): The government will look into an opt-in and opt-out option for the targeted fuel subsidy.

"If there are others that should be included, then we are okay with that. We will do an opt-in and opt-out option," Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail told reporters at the parliament lobby today.

When queried why the targeted fuel subsidy, which starts on Jan 1, 2020, would not be implemented in Sabah and Sarawak, Saifuddin said petrol consumption was lower there compared to Peninsular Malaysia.

He added that floated RON95 fuel prices could rise as much as 30 sen per litre and that this targeted subsidy will benefit the bottom 40% income group (B40) as they tend to own cars that require less petrol.

"Through my engagement with oil companies, the forecast of the price of oil will be around US$50 to US$60 a barrel," he said.

The new targeted fuel subsidy will be for the B40 segment of society who are also recipients of Bantuan Sara Hidup.

For cars, individuals who only own one car below 1,600 cc in engine capacity can apply for the subsidy.

As for motorcycles, the subsidy is only given to those with engines of 150 cc and below, or bikes that are seven years old or more that are above 150cc.

Sabah and Sarawak will maintain the current automatic pricing mechanism and subsidy on RON95 petrol, with the price capped at RM2.08 per litre.

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