Fuel Subsidy In Malaysia

An overview of malaysia s energy subsidies transport fuel has been subsidized in malaysia since 1983 and is now an intensely political issue.

Fuel subsidy in malaysia. In 2011 more than 10 per cent of the government s operating expenditure was spent on fuel subsidies. The government will announce the mechanism involved in targeted fuel subsidies for ron95 in two weeks time. Learn to live within your means and you will be able to afford malaysia really well. Kuala lumpur oct 11 the targeted subsidy programme psp for fuel will be implemented in january 2020 in peninsula malaysia for those who fulfil the criteria.

According to the road transport department s jpj data there are 11 6 million cars on the road and 6 8 million motorcycles. The expansion of the targeted fuel subsidy means this scheme will now benefit 8 million malaysians and the government will allocate a total of rm2 2 billion. The current fuel subsidy scheme is open to all. Domestic trade and consumer affairs deputy minister datuk rosol wahid said the government decided this after considering the price difference of fuel between the.

Under the fuel subsidy scheme a car must have a 1 600cc engine and below or be more than 10 years old with an engine that is 1 600cc and above. The qualifying criteria for the vehicles are a car with a 1 600cc engine capacity and below or any car above 1 600cc which must be more than a decade old. Malaysia first introduced subsidies for transport fuel back in 1983. Although consumers may not have seen much change in costs as global barrel prices fell the economy overall is much the stronger for the reforms with a serious fiscal imbalance created by the subsidy system now largely corrected.

It is not currently known the actual mechanics of the distribution of the card nor how it will be used but more on this will definitely be revealed in the coming days.