Govt decides to cancel PSP

pic by BERNAMA

THE government has decided to cancel the proposed petrol subsidy programme (PSP) introduced by the previous administration on grounds that it would lead to wider retail price gaps between the Peninsular and Borneo states.

Deputy Domestic Trade and Consumer Affairs Deputy Minister Datuk Rosol Wahid (picture) said the decision was made following a meeting between his ministry and the Finance Ministry.

“On July 9, the two ministries held a meeting on the PSP and agreed that we will not be implementing it due to several reasons,” he told Dewan Rakyat yesterday.

Rosol was responding to a question from Shaharizukirnain Abd Kadir (Perikatan Nasional-Setiu) on the PSP’s new implementation date.

The targeted fuel subsidy scheme for RON95 petrol was supposed to have begun in January, but was deferred to a later date.

The subsidies were to be credited to eligible recipients every four months, with car owners receiving RM120 and motorcycle owners receiving RM48 in each payment. The first payment was originally scheduled to be made in April this year.

“The decision to scrap the programme was also to avoid misunderstanding as the PSP would only involve consumers in the Peninsular and not those in East Malaysia.

He said the middle 40% group would have needed a special card to enjoy the subsidies, which could lead to doubts among the people on the disbursement.

Rosol said the government is looking into an alternative approach in helping the people where fuel subsidies are concerned.

The existing price cap of RM2.08 per litre for RON95 would have been removed should the PSP come into effect, with the fuel then being floated as RON97 is.