According to an article from Berita Harian here,  Ron 95 is predicted to be free floated next year due to increase in fuel price. There is a possibility of targeted directed subsidy , where only eligible  people will receive Ron 95 subsidy. According to various sources , targeted subsidy mechanism pilot project has been running for a few months , thus it would probably be implemented during budget 2023.

Finance Minister Tengku Zafrul has also stated before that T20 has enjoyed the huge  chunk of Ron 95 subsidy.  The current subsidy mechanism is unsustainable. According to Ministry of Finance , a total of 4 billion subsidy has been enjoyed by T20 group. For every 1 ringgit subisidy, 52 cents will be enjoyed by T20 while , 15 cents will be enjoyed by B40.  Thus if 30 billion has been allocated as subsidy this year, over 15 billion will be enjoyed by T20.

Pilot trial on targeted subsidy scheme

According to recent interview with BFM,  the government is currently selecting the mechanism to be implemented to address the rising of crude oil price.  This may include using ewallets at petrol stations.

It is now confirmed that the Ron 95 will be moving up 1 or 2 cents every week after the implementation of PSP (Petrol Subsidy Program) that will kick off at the start of 2020 according Deputy Minister of Domestic Trade and Consumer Affairs Chong Cheing Jen. The rise of Ron 95 will be gradual and will have minimal effect to cost of living. Deputy Minster also stated that the decision to slowly float the fuel price is to reduce rakyat’s cost of living and to prevent goods from rising too sharply. Chong also added that the ministry will have the price control act to avoid any businesses from taking advantage of PSP to increase prices.

As of 2020, Ron 95 prices will be freely floated according to market price. This decision will save government billions in revenue while the fuel subsidy will be channeled directly to the B40 group. The household income for BSH recipient should not be more than RM 4,000. The B40 group is already listed in BSH as such you will need to be in the database to enjoy PSP program. There are also cars requirement for one to be able to enjoy PSP program. One can only qualify for PSP if they own a car which is not more than 1600 cc or motorcycle that is lower than 150 cc. Around 2.9 million will benefit from PSPS program while government will be able to save a total of RM65.4 billion monthly subsidy. PSP will not be available in Sabah, Labuan and Sarawak as both states will still be receiving Ron 95 fuel subsidy. Ron 95 petrol will remain at RM2.08 while West Malaysia price will be floated on weekly basis.

Click here to check whether you qualify for PSP program.

The new fuel subsidy plan is ready.  The new RON 95 subsidy will be disbursed based on Electricity Bills as reported by Sin Chew Daily. According to Deputy Domestic Trade and Consumer affairs minister Chong Chieng Jen said that only those that falls under B40 category will be receiving Ron 95 subsidy , where their electricity bills are around RM100 to RM200 , will be entitled for Ron 95 petrol subsidy.

A total of RM30 monthly subsidy will be given to those eligible , or RM 0.30 for each liter of Ron 95 with a maximum usage of 100 litres per month. A motorcyclist will be given a RM12 monthly subsidy. According to Chong, the cash will be deposited directly into recipient bank account which are already in Bantuan Sara Hidup (BSH) database list.

The new Ron 95 subsidy plan will be submitted for Cabinet approval on October 2019 while there are no details on when the plan will be implemented. Based APM , the current price for Ron 95 would cost around RM 2.50 per litre  which is around 50 cents higher than pump price without any subsidy from the government. The M40 or household with earnings more than RM 3,900 per month is expected to pay more on fuel once the new Ron 95 subsidy is implemented.

Previously, Finance Minister Lim Guan Eng has proposed that fuel subsidy to be based on vehicle engine capacity during the Budget 2019 implementation. The plan however was postponed and delayed due to study on best disbursement method while lacking of data on B40 group. Currently, the government is spending around 130 million weekly for Ron 95 subsidy.  The government is expected to save RM 2 billion annually with the following targeted subsidy mechanism. The Ron 95 price would then float based on international fuel price that would be reflected every week as the current Ron 97 fuel.

Follow the latest Ron 95 price soon on petrolpricemalaysia.info today.

Malaysian government will soon finalized the targeted fuel subsidy scheme. Previously, Finance minister Lim Guan Eng announced that only vehicle below 1,500cc and motorcycle below 125cc would be receiving petrol subsidy during Malaysia 2019 Budget, capped at 100 liters for car owner while 40 liters for motorcycle owners. There were arguments on difficulty with implementation of such system. Often it may be hard to the benefit to reach the intended recipients and leading to leakages.

The government has considered different method for fuel subsidy,  the plan to subsidize fuel based on car engine capacity has been dropped , and the petrol subsidy would be channeled directly into lower income group through programs such as BSH (Bantuan Sara Hidup) scheme. Many believes such method are most efficient in targeting the fuel subsidy group. The cash disbursement for petrol price subsidy shall be reviewed quarterly

Database from BSH will provide information on targeted fuel subsidy group. The minister said that with improved information, they can always counter check data from BSH and JPJ for vehicle ownership. BSH recipients without car or motorcycle ownership will not be able to enjoy petrol cash subsidy.  Domestic Trade and Consumer Affairs minister Datuk Seri Saifuddin Nasution is expected to announce the cash petrol subsidy program very soon.

At the time of writing, Ron 95 is being subsidized to all Malaysians while it is being capped at RM2.08 per liter. The price cap would be lifted and Ron 95 would be free float based on international oil price after the direct petrol cash subsidy comes into effect.  The announcement for weekly fuel price is made every Friday. Catch the latest petrol price update on https://petrolpricemalaysia.info/

Brent Crude oil reached it’s yearly peak around April 2019 at 74 USD per barrel and crashed out after that. It is now climbing up slowly probably due to rally in stock indexes which is reaching it’s previous peak again, and tension between US and Iran which is a major oil supplier. It jumped from the low of 59 USD per barrel and is now hovering at 65 USD per barrel moving slowly presumable due to current ongoing G20 meeting.  Will we see a rise in Petrol Price in Malaysia due to global rise in Oil price ?

Kuala Lumpur: According to Minister of Domestic Trade and Consumer Affairs Saifuddin Nasution,  the ceiling price for Ron 95 maybe lifted and fuel subsidy would only available for BSH recipient in the future. The government is still considering the possibility removing the ceiling price while letting Ron 95 and Diesel price to float according to global fuel price.  This plan would enable to government to channel the fuel subsidy effectively and efficiently only to B40 Malaysians.

Saifuddin said the targeted subsidy mechanism is in it’s final stage where the ministry is waiting for the finalized updates on latest BSH recipient. The ministry is also considering whether to give cash or bank in the fuel subsidy directly to BSH recipients.

The price of Ron 95  and Diesel would be capped although global fuel price is rising. Once targeted subsidy is implemented, the ministry will also be looking at providing subsidies for flour, cooking oil and cooking gas. Other efforts are also been looked at to reduce the cost of living borne by the people such as removing middleman for a supply chain of basic goods.

The targeted fuel subsidy system is on schedule where the ministry is selecting vendor to implement the system that is easy to use. The preparation has been made to make sure the new system will be running smoothly without causing huge impact.

The government would able to save more cost while is able to help the B40 group with the new targeted subsidy mechanism. The decision would be known after the targeted petrol subsidy scheme is implemented. Early this year the government has capped Ron 95 at maximum RM2.08 per liter while diesel at maximum RM2.18 per liter when the weekly fuel price was reintroduced.

The worldwide crude crude oil has been rallying since early of this year. UK Brent oil is priced around 71 USD per barrel while US OIL is priced at 64.50 USD per barrel at the time of writing. The spike in oil price is perhaps due to uncertainty in oil producing countries such as Venezuela and Libya.  OPEC has also systematically reduced it’s production, thus limiting supplies into the market hence adding bullishness into the oil market.

Last Friday’s encouraging jobs data from U.S has also contributed to a spike in oil price. We are fortunate that Malaysian’s Ron 95 is pegged at RM 2.08 per liter. While majority of us are Ron 95 users  but will we see the rise of Ron 97 and Diesel price in Malaysia ?  This is possibly likely as global oil price are trending higher at the time of writing.

Traveling with cars is very common for most of the Malaysians, as the current public transport infrastructure does not allow us to commute conveniently as compare to driving our own car. Hence, the amount of money spent on petrol has a significant value and we all wish to save more money on our monthly petrol bill. There are a number of credit cards for petrol cashback and provide more benefits whenever we pump petrol.  

Before moving to the credit cards list, we would like to know more on the ceiling price for fuel. What is a ceiling price? A ceiling price is the maximum price that a seller is allowed to charge for a product or service, ensuring fair and reasonable business practices. This price control is imposed by the government in order to protect consumers from being charged sky high on commodities like petrol. Beginning from end of March 2017, the ceiling price will be announced every Wednesday. In short, this move is to enable consumers to be aware of the current prices of the petrol.

HSBC Amanah MPower Platinum

As mentioned, there are a number of credit cards in Malaysia are offering cashback or reward points when you spend on petrol. Here are some of the best credit cards for you when it comes to petrol spending. The HSBC Amanah MPower Platinum Visa Credit Card-I has good cashback program that helps you to get the most of your purchases. If you spend on petrol and groceries, you will be receiving either a 2% or 8% cashback rate with monthly cap of RM50. Bear in mind that there will be a 20 days grace period for all shopping transactions provided that all your outstanding balance as per stated on the monthly statement is fully paid. If you are interested in this credit card, your minimum income must be RM2500 or RM30,000 per annum. The annual fees will be less than RM100 for primary card and less than RM50 for supplementary card. However, you will be eligible for an annual fee waiver with a minimum of 12 swipes in a year.   

Shell-Citi Gold Credit Card

If you want to save on your petrol spending and have exclusive privileges, Shell-Citi Gold Credit Card may be the one credit card that meets these criteria. It is divided into three tiers. In tier 1, you may receive up to 4% rebate on shell fuel spending when you spend minimum RM300 up to RM999 per month. In tier 2, you may receive up to 6% rebate on shell fuel spending when you spend minimum RM1000 up to RM2499 per month. In tier 3, you may receive up to 8% rebate on shell fuel spending when you spend minimum RM2500 and above per month. The monthly cap for tier 1, 2 and 3 is RM10, RM30 and RM64 respectively. In order to apply for this credit card, your minimum monthly income must be RM2000 or RM24,000 per annum. The annual fees will be around RM200 for the principal card holder whereas about RM100 for the supplementary card holder. However, there will be no annual fees for the first year of signing up the credit card when you use it for three times within two months of the card approval.

Petronas Maybank Visa

We also have some Petronas related credit card such as the Petronas Maybank Visa, which can be considered as it helps t save on petrol cost. With this credit card, you may receive additional privileges like an 8x Treat Points on weekends and 5x Treat Points on weekdays. The points that you have collected can be used to redeem petrol. Thus, the more points you collect, the more free petrol you can redeem. You can apply for this credit card if you have a minimum income of RM2500 or RM30,000 per annum. There is no annual fee incurred. Another Petronas related credit card is the CIMB Petronas Mastercard. This credit card is highly recommended for those of you who frequently spend on fuel at Petronas as you can get up to 7% cash rebate daily by using this card. There will be a 7% cash rebate with a statement balance of RM3000 and above, 3% cash rebate with a statement balance of RM3000 and below; and 2% cash rebate on other retail spend. The cash rebate on Petronas spending will be capped at RM50 monthly but there is no limitation of cash rebate on other retail spending. Similar to the Petronas Maybank Visa, it does not charge annual fee. You must have a minimum income of RM2000 in order to be eligible for this credit card.

Alliance Bank Platinum Card

The Alliance Bank Platinum Card will not only reward you when you spend on fuel but also allow you to redeem air miles for both Enrich Miles and AirAsia BIG Points. However, this is only applicable to Visa credit card holder only. Here are the points that you will receive for each spending, 3x for every RM1 spent on overseas retail, 2x for every RM1 spent on petrol, grocery and utility and 1x for every RM1 spent on domestic retail. Interestingly, there will be no expiry date for the points that you have collected. If you wish to apply for this credit card, your minimum income has to be RM5000 per month. There will be an annual fee waiver every year with minimum spend of RM5000 or 12 swipes within 12 months period.

Another credit card that helps you to save money when you pump petrol is the Alliance Bank You:nique. It is really unique as it offers the unique feature of having a personalized credit card. Apart from that, you can choose your personal preference feature between rebates, rates and rewards. If you have chosen rebates, you can get up to 3% cashback and 2 reward points for every RM1 on every overseas and retail spending. The minimum requirement to apply for this credit card is very simple as long as you have a minimum income of RM2000 per month. The annual fee that will be charged is about RM150 which will be waived for its first 3 years. Then, you’ll be able to get the annual fees waived if you spend RM5000 or 12 transactions annually for the subsequent years.

Standard Chartered Just One Platinum Card

You may also save money when you pump petrol by using the Standard Chartered Just One Platinum Card. At the same time, you will be getting some other benefits too. If you spend a minimum retail of RM500, RM800 and RM1500, you will be receiving a 2%, 3% and 5% cashback respectively. Nevertheless, there is a cashback cap for retail spending and minimum petrol spend amount in order to be eligible for cashback. To sign up for this Standard Chartered credit card, your minimum monthly income has to be RM2000 or annual income has to be RM24,000. The annual fee is slightly higher about RM260.

If you are looking for an Islamic petrol credit card, the AmBank CARZ Platinum Credit Card is one of the best options. It is a Shariah compliant credit card which is ideal for those of you who do not wish to be limited to only one petrol brand. With this credit card, you can earn cash rebate easily on any petrol purchase of any brands. Revolvers can get a 3% rebate whereas transactors can get 2% rebate capped at RM20 per month. Besides that, you can also collect CARz Point, which can be used to redeem auto-related goods and services. With a monthly income of RM2500, you are already eligible to apply for this credit card. There will be no annual fee which is free for the principal and first 3 supplementary card holders.

Look for the best credit cards and personal loan in Malaysia.