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.