Come May 1st RON95 is RM2.10

By Syed Akbar Ali


That's right. The Government is quite firm on "restructuring" the fuel subsidy on May 1st. Here is how it will work. First the price of RON95 will go up to RM2.10 per litre. Those who are eligible for the subsidies will have to swipe their MyKads at the gas stations and they will still get gas at the "old" price of RM1.80 per litre.


Those who are not eligible will have to pay RM2.10 per litre. This is based on todays world prices for oil. If oil goes up or down between now and May 1st, then the prices will be adjusted.


Eligible means cars below 2000 cc while cars above 2000 cc are not eligible. Between now and May 1st, you must register your MyKad and your car (if it is below 2000cc) somewhere. Details to be announced I think. Those with cars above 2000cc need not bother. You dont get the subsidy anyway.


Petrol stations will be equipped with a hand held device which can read your MyKad so that you can get your subsidy and also to read the amount of petrol you have used. The Government plans to allow only 100 litres of subsidised petrol per car owner per month. Only one car will be allowed for the subsidy.


All gas stations will be linked online (by May 1st) so that your usage of petrol will be monitored. The Government has talked to all the oil companies and they have all agreed.


Diesel will still be subsidised and commercial vehicles will not be affected. Only petrol driven privately owned passenger vehicles are eligible or not eligible for the subsidy.


What this means is that owners of cars below 2000cc will not see any reduction in their living expenses. They will still pay RM1.80 per litre for RON95 like they do today - no change there, except they will now have to flash their MyKads everytime they buy petrol, because they will only get say 100 litres of subsidised petrol a month..