AP - Tuesday, May 27
KUALA LUMPUR, Malaysia - The government will ban people in
foreign-registered vehicles from buying gasoline in border areas of
Malaysia, where heavy subsidies have kept petroleum costs low
despite soaring prices internationally.
Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad
said a day earlier that the ban was aimed at keeping foreigners
from driving into Malaysia from Thailand and Singapore to fill up
on cheap gasoline and diesel, which cost up to twice as much in the
neighboring countries.
The ban was "a stern act by the government to reduce the leak in
subsidy," national news agency Bernama quoted Shahrir as saying.
His aide, who declined to be named citing protocol, confirmed his
comments Tuesday.
The fuel subsidies, which were expected to cost the government
45 billion ringgit (US$14 billion; �9 billion) this year, "should
actually be enjoyed by the lower-income group in the country" and
not foreigners, Shahrir said.
"This move is temporary until we come up with better management
of our subsidy system," The Star daily quoted him as saying.
Shahrir said the ban could take effect as early as Friday at up
to 300 stations within 30 miles (50 kilometers) of the borders with
Thailand and Singapore.
Alang Zari Ishak, president of a local petroleum dealers
association, said the ban may hurt tourism and relations with
Malaysia's neighbors.
"It's a very harsh decision," he said. "There are other ways to
curb this subsidy money being utilized."
Enforcement officers will monitor gasoline stations and signs
will inform motorists of the new rule, Shahrir said. Those found
breaking the rule could be fined or face up to three years in jail,
said another official in Shahrir's ministry. He declined to be
named, citing protocol.
Currently, foreign registered vehicles are allowed to buy only
up to 5.3 gallons (20 liters), he said.
Although oil prices have soared globally, the government of
Prime Minister Abdullah Ahmad Badawi has not raised retail
gasoline, diesel or gas prices.
