Subsidised petrol 'not
for foreigners'
Straits Times, The
(Singapore)
Asia - Malaysia
November 13, 2007
KUALA LUMPUR - THE government has been urged to stop Singaporeans
from filling up their vehicles with subsidised petrol and diesel in
Malaysia.
Mr Khalid Mohamad, Umno Youth chief for Johor Baru, said that the
government should not allow foreigners to enjoy subsidised petrol
any more.
He suggested a system to ensure that foreigners pay unsubsidised
rates, as well as a fee of RM20 (S$9) to be imposed on Singaporean
and Thai vehicles entering the country.
'When the government restructures the subsidy system, it should
review the way in which foreigners have been enjoying subsidised
petrol and diesel,' he said.
'The government should set up a special method to identify foreign
licence plates or a special terminal selling unsubsidised petrol
and diesel in cities near neighbouring countries,' he was quoted as
saying by the Malay-language Berita Harian.
The newspaper reported that because of cheaper pump prices in
Malaysia, thousands of vehicles from neighbouring Singapore and
Thailand pour into the country.
Even if petrol was sold at unsubsidised rates to Singaporeans, the
price would still be low because of the currency exchange rate,
which is favourable to the city-state, said Mr Khalid.
The extra revenue could be channelled into other sectors such as
health and infrastructure development, he said.
The prices of unsubsidised petrol RON97, RON92 and diesel in
Malaysia are S$1.08, S$1.04 and 87 cents per litre respectively,
said Berita Harian.
Malaysian Prime Minister Abdullah Badawi has said that the
government will restructure
fuel subsidies to ensure that the poor pay less for their petrol
than the rich.
Malaysia maintains petrol prices that are among the region's
lowest, through hefty fuel subsidies.
The subsidies are expected to cost the country at least RM35
billion a year if crude oil prices hit around US$100 (S$145) per
barrel.
Copyright, 2007, Singapore Press Holdings Limited