Targeted fuel subsidy mechanism to be finalised by July

The government expects to finalise the targeted petrol and diesel subsidy mechanism by July at the latest.

Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail said this would enable the government to identify the vendors and fine-tune the list of deserving recipients.

"When the MoF (Ministry of Finance) has chosen the vendors, they will inform our ministry, enabling both ministries to work together to update the related issues.

“This is because we want to make sure the programme runs smoothly. The most important component is to ensure that the list of beneficiaries is reliable.

“The list is being prepared by 17 agencies, not only the Inland Revenue Board, the Registration Department and the Road Transport Department, but also other agencies as well," he said.

“We want to do a crosscheck to ensure that the recipients are really qualified and we need a bit more time for that,” he said after announcing the partnership between Petronas Dagangan Bhd (PDB) with Loob Holding Sdn Bhd and Universiti Teknologi Mara (UiTM) in Kuala Lumpur today.

The Finance Ministry has issued a Request for Proposal for the implementation of a new targeted petrol subsidy system.

On Wednesday, Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen was quoted as saying that the government had yet to make a final decision on the implementation of the targeted petrol and diesel subsidy mechanism.

He said the mechanism has to fulfill three key features, namely smooth and user-friendly implementation, equipped with high-security features, and could be used at all petrol stations in urban or rural areas.

Meanwhile, PDB managing director and chief executive officer Syed Zainal Abidin Syed Mohamed Tahir said the cooperation with Loob involved the opening of the Tealive franchise premises at the Petronas Kedai Mesra network across the country, including the opening of 300 shops within three years.

He said the collaboration was in line with the company's strategy to grow non-fueled businesses besides being a one-stop centre for the community.

The collaboration also provides entrepreneurial opportunities for UiTM's final year students to attend industrial training and pioneer programmes conducted by PDB.

UiTM deputy vice-chancellor (industry network, community, alumni and entrepreneurship) Rahmat Mohamad was present.

- Bernama