Petrol subsidy directly for BSH recipients

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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