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NEWS UPDATES 8 January 2010

Malaysia fuel subsidies leave out foreigners

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Foreigners will pay full price for fuel at Malaysia's petrol pumps from May 1 as subsidised fuel will be sold only to Malaysians from that date, reported Singapore’s Straits Times daily, quoting a government minister.

Minister of Domestic Trade, Cooperatives and Consumerism Ismail Sabri Yaakob said Malaysians will still be able to buy subsidised fuel but with restrictions. The amount will depend on the engine capacity of the car they drive.

“Not all Malaysians will get the full fuel subsidy,” he told The Straits Times. He said details of the dual price structure will be announced on May 1, as these were still being worked out.

The minister confirmed that the new fuel mechanism would involve the use of the Malaysian identity card which carries an embedded computer chip. The amount of subsidy will be stored in the chip, he said.

Ismail said the current restriction on fuel sales to foreign-registered cars will be lifted once this new system comes into place. The fuel sales cap is a temporary measure to curb the sale of subsidised fuel to foreigners.

Currently, foreign-registered vehicles can buy only 20 litres of fuel from stations within 50km of the country's borders.


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