KPDNHEP Minister Saifuddin Nasution Ismail said the discussions would also consider the financial implications to the government, apart from ensuring the subsidy system could be efficiently implemented.

“Finance Minister Lim Guan Eng and I hope to formulate a mechanism after looking at the various aspects.

“The eligibility of certain groups, their income level and the type of vehicles are among things that need to be taken into consideration,” he said after a meeting with consumer NGOs here today.

Apart from targeting the lowest-income group (B40), he said the ministry was also looking at the effects of the implementation of the new mechanism on the middle-income group (M40).

“I also want to see the people debating the mechanism. Such discussions can help the government make a decision,” he said.

Earlier, in his speech, Saifuddin said Malaysians used 1.2 billion litres of petrol a month with 90% using RON95 petrol, which is subsidised 10% more than those using RON97.

He said among the proposals was to not give subsidised petrol to the highest-income group (T20) and M40 using luxury cars.

“This will include those driving Mercedes, BMW or cars with 2.0 and higher capacity.

“We will give the petrol subsidy to the B40 and also Malaysians driving smaller cars,” he said.

Saifuddin said the ministry was also holding discussions with petrol companies and petrol station operators, including those in rural areas, to get their feedback.

Earlier, Deputy Finance Minister Amiruddin Hamzah was reported as saying the government was expected to announce a new petroleum subsidy mechanism by early next year.

In another development, Saifuddin said KPDNHEP was considering raising the limit for claims at the Tribunal for Consumer Claims Malaysia (TTPM) from RM25,000 to RM50,000.

He said this was necessary as the cost of goods and services had risen.

Since its establishment on Nov 15, 1999, till September this year, TTPM had handled 100,533 cases involving losses totalling RM152 million.