New System To Ensure Subsidised Diesel, Petrol Sold Only To Eligible Commercial Vehicles

(Bernama) – The government will introduce a new system beginning this Sept 1 to ensure the sale of subsidised diesel and petrol is only to eligible commercial vehicles.

Domestic Trade, Cooperatives and Consumerism Ministry’s secretary-general Datuk Seri Alias Ahmad said a similar system for private vehicles would be implemented in October or November.

He said detailed information on the new system would be revealed at a news conference soon.

“The government is finalising a new system for about 3,500 petrol stations in the country to ensure the sale of subsidised diesel and petrol is made only to genuinely eligible vehicles.

“The government targets savings of RM9.8 billion through the implementation of the new system which is assured to be more efficient and effective,” he said after the launching of the Malaysia Consumer Expo 2014, here, Saturday.

The nine-day expo starting yesterday and opened by Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek, is participated by over 200 companies showcasing their products and services.

Alias said the government was confident that the new system could curb abuses and leakages, hence economic wastage, in the distribution of subsidised diesel and petrol.

Currently, the price of RON95 is RM2.10 per litre (63 sen subsidy) and RON97, at RM2.80 per litre.

Alias said the ministry also planned to limit the sale of diesel and petrol at each fuel station in the border areas nationwide to 600,000 litres per month soon.

He said the quota was introduced as a preliminary measure to stem the misappropriation of subsidised diesel and petrol until a more efficient system was introduced.

Yesterday, Alias announced that the ministry limited the sale of diesel and petrol by each fuel station at the Kelantan-Thailand border area to 600,000 litres per month effective today, to check rampant smuggling of the subsidised fuel.