Had anyone checked if previous price increase had been debated? Just curious as many Malaysians like myself have political apathy.

If he want to continue that scheme, Malaysia should implement COE just like Singapore to buy a car. Another blank idea.

No petrol subsidy for non-citizens from May 1
News 2010-01-07 19:15

PETALING JAYA, Jan 7 (Bernama) — 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, where only citizens will get the subsidy,” he said.

Not all citizens will also get to enjoy the subsidy like now. An announcement on the detailed mechanics of the system will be made on May 1.

“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, those who don’t qualify and foreigners will pay RM2.10 or more for RON 95, he said.

Those who qualify for the subsidy will pay RM1.80 as fixed now.

Ismail said the government might also impose tax on foreigners 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.

Saturday January 9, 2010
Businessmen upset over new petrol subsidy scheme

JOHOR BARU: Local businesses are upset over the recently announced petrol subsidy scheme, which would require those with bigger engine capacities to pay a higher price for petrol.

Johor Baru Chinese Chamber of Commerce president Loh Liam Hiang said the ruling was unfair as people with bigger vehicles were already paying higher road tax.

“Those who drive 2.8 litre cars pay more than RM4,000 yearly in road tax,” he said yesterday.

“This new ruling will burden them even more as these cars already consume more petrol.”

Loh said the ruling would result in double standards, as all Malaysians would not share in the benefits from the petrol subsidy.

On Thursday, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob announced that the Government was planning a fuel pricing mechanism to ensure that only targeted groups, particularly those from the lower-income, would receive the fuel subsidy.

Malaysian Indian Business Association president P. Sivakumar said the ruling was not fair to businessmen, who tend to drive bigger cars, as not all of them are rich.

“Businessmen drive big cars because it can create a perception of success.

“However having a big car does not necessarily mean that one is rich and able to pay more for petrol,” he said.