KUALA LUMPUR: The government has decided not to proceed with plans to implement the Petrol Subsidy Programme (PSP) which was mooted by the then Pakatan Harapan administration.
Deputy Domestic Trade and Consumer Affairs Minister Datuk Rosol Wahid told the Dewan Rakyat today his ministry and the Finance Ministry had agreed not to implement the programme, taking into account several factors.
They include the price difference of fuel between Peninsular Malaysia and East Malaysia and the transparency of the programme.
"On July 9, the two ministries held a meeting on the PSP and agreed that we will not be implementing it."
Rosol was responding to a question from Shaharizukirnain Abd Kadir (Pas-Setiu) on the new implementation date of the PSP.
Rosol said the decision to scrap the programme was also to avoid misunderstanding, as the PSP would only involve consumers in the peninsula and not those in Sabah, Sarawak and Labuan.
He added that the government also wanted to avoid a large gap in prices between East and West Malaysia.
The PSP, which was supposed to be implemented in Peninsular Malaysia on Jan 1, was initially targeted at some 2.9 million people in the B40 group who are eligible for the Cost of Living Allowance.
During the tabling of the 2020 Budget last year, then finance minister Lim Guan Eng announced the PSP would be expanded to include about five million middle-income earners, whose monthly household income was less than RM4,000.
Cars with an engine capacity of 1,600cc and below are eligible for the petrol subsidy, while cars with an engine capacity above 1,600cc must be more than a year old to be eligible.
Meanwhile, motorcycles must have an engine capacity of 150cc and below to be eligible, while bikes above 150cc must be more than seven years old.