Effective from May 1, Malaysians and non-citizens will have to pay different petrol prices as foreigners are not eligible for subsidised petrol, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob announced today.
Mind you, Not all Malaysians will get to enjoy subsidised petrol as it will follow the engine capacity and other factors such as socio-economy!
Once introduced, it may be compulsory for petrol purchasers to show or use their My-Kad.
This look very Complicate.
We need get more details on this. Further information on the new structure would be announced on May 1, 2010.
If we have to pay the Market Price for Petrol then our Car Price also should be based on MARKET PRICE as well!
Two price structures for petrol from May 1
There will be two price structures for petrol from May 1 — one for Malaysians and another for foreigners — Domestic Trade and Consumer Affairs Minister Datuk Seri Ismail Sabri Yaakob said on Thursday.
For Malaysians, the price of petrol will also be based on engine capacity, which means that not all would be entitled to subsidised fuel, he added.
Different petrol prices would be introduced for different groups of Malaysians, Ismail told a press conference here on Thursday after launching the new corporate identity of the F&N Soft Drinks Division.
Amongst the things that would be considered are the engine capacity of vehicles and socio-economic factors, he said.
He said that the subsidy for petrol would be retained but only targeted groups would receive the subsidy.
“The categories will then be divided into sub-categories such as the engine capacity of the vehicles used and other factors such as socio-economy,” he said.
“For RON95 petrol, the Goverment’s subsidy is 30sen per litre now. The current price of RON95 petrol is RM1.80 compared to the actual price, which is RM2.10.
“So, Malaysians who are not eligible for the subsidy and also non-citizens will have to pay RM2.10 or more,” he added.
Besides introducing the new structure, the ministry also plans to make the usage of My-Kad compulsory when buying petrol to identify one’s nationality.
“We have Thai nationals who drive into Malaysia to fill up their tank as they don’t receive any subsidy, which makes petrol such an expensive commodity there,” he said.
Further information on the new structure would be announced on May 1, 2010.
Umno deputy youth chief Khairy Jamaluddin, who first broached the subject in 2007 when debating the economic resolution before the last general election, had said that the subsidy must reach only the people who most needed it.
The current method was tantamount to a misallocation of funds, he had said.
Meanwhile, the subsidies on flour, sugar and gas would be retained, announced Ismail.
“Although the price for sugar has increased by 20sen, the Government is still footing the 80sen subsidy on sugar,” he said.
Ismail later conducted spot checks on several stores and eateries in the area to check on whether they had increased the price of food items after the increase in sugar price.
He said that the 20sen increase in sugar price should not be taken advantage of by food outlet operators.
“Food outlet operators should not regard this as an opportunity to increase the prices of food items,” he said.
Foreigners, and some M’sians, to pay more for petrol come May 1
From May 1, Malaysians and non-citizens will have to pay different petrol prices as foreigners are not eligible for subsidised petrol, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob announced today.
“Currently everyone enjoys the subsidy, including foreigners. From May 1, the purchase of petrol using My-Kad will be introduced, whereby only citizens will get the subsidy,” he said.
To further complicate matters, not all Malaysians will get to enjoy subsidised petrol either. An announcement on the detailed mechanics of the system will be made on May 1, the day it goes into effect.
“Under the citizens category, there will be sub-categories where only targeted groups will get the subsidy,” he said after officiating the launch of a new corporate identity for Fraser & Neave Holdings Bhd’s beverage division.
He said the petrol subsidy for those who qualify will be based on the engine capacity of their vehicles. The focus will be on those with lower income who also usually use cars with smaller engines, he said.
Ismail said the government currently subsidised 30 sen of the RON 95 fuel cost. The original price of RON 95 is RM2.10.
“Therefore, the price of subsidised RON 95 is RM1.80.”
Under the new system, Malaysians who don’t qualify and foreigners will pay RM2.10 or more for RON 95, he said, while those who qualify for the subsidy will pay RM1.80.
Ismail said the government might also impose tax on foreigners, up to an amount which is to be determined by the Finance Ministry.
Besides oil, the government currently also subsidises gas, flour and sugar.
Ismail also said that while sugar price had been increased by 20 sen, the government still provided a subsidy of 80 sen for the item.
“Last year, the government provided a subsidy of 60 sen per kg, but due to the drastic rise in world sugar price from August last year, the government had to bear a subsidy of RM1.00, and that is why we increased the price,” he said.
With the 80 sen subsidy given, the government will be bearing a subsidy cost of RM1.008 billion this year compared with RM720 million last year. – Bernama