The Malaysian government is reporting of a new and improved petrol subsidy system which will be unveiled before the end of the year, reports the Sun.
Secretary-general of the Domestic Trade, Cooperatives and Consumerism Ministry Datuk Seri Alias Ahmad said that the new system which is currently on the final stage of drafting will save RM9.8 billion in total subsidies.
Currently, RON95 retails at RM2.10 per litre (with 63 sen subsidy) while RON97 is RM2.80. The subsidy for RON95 petrol is available for all including those from the higher income group but the Malaysian government plans to review it and issue a new subsidy system on Sept 1 for commercial vehicles, and private vehicles on Oct 1 and Nov 1.
Apart from that, the ministry has also taken steps to limit sales of petrol and diesel to 39 petrol stations in Kelantan which is near the boarder of Thailand to curb smuggling of diesel and petrol to the neighbouring country.
“The petrol stations can sell only 600,000 litres of petrol and diesel in a month starting yesterday,”Alias said. He also mentioned that the ministry will continue to monitor petrol and diesel smuggling activities near the area until December and will set up a special intelligence team to keep tabs of smuggling syndicates.
Source: The Sun
