Deputy Minister in the Domestic Trade and Consumer Affairs Ministry (KPDHEP) Chong Chieng Jen has provided a timely update on the status of the targeted petrol subsidy mechanism.
In a report by The Star daily, Deputy Minister Chong said that the Government has not made any final decision on the matter.
"The Finance Ministry has called for an open tender for parties interested to propose the best mechanism for the implementation of the targeted subsidy," he said in response to a question at Dewan Rakyat this morning.
"The subsidy system must be simple to use and can be used by all petrol stations throughout the country," Chong added.
Under Budget 2019, the Government proposed to subsidize RON 95 fuel up to RM30 per month for cars with engine displacement 1,500 cc and below and RM12 per month for motorbikes under 125 cc in engine displacement. Trials were expected to begin in this month, with full implementation by the second half of the year.
It is also reported that the government has set aside some RM 2 billion for the new initiative, which is expected to benefit more than four million car owners and 2.6 million motorcycle owners.
Several proposals have been put forward by consumer groups, including the use of a petrol card to purchase subsidized petrol.