New Proposal On Fuel Subsidy To Be Tabled To Cabinet

The Domestic Trade, Cooperative and Consumerism Ministry will table a new proposal on the restructuring of the fuel subsidy to the Cabinet soon.

Its minister, Datuk Seri Ismail Sabri Yaakob, said the ministry, with cooperation from the Subsidy Rationalisation Lab, would propose the best implementation mechanism to channel all subsidies including fuel, food or infrastructure.

"We will also propose to the Cabinet the best suitable methods to curb the purchase of subsidised fuel by foreign nationals," he told reporters after opening the mini fuel station operated by the Gugusan Sri Makmur Felcra Settlers Cooperative here Saturday.

At present, foreign motorists are only allowed to buy fuel up to 20 litres within 50km of the borders, but the ruling does not apply to other places including Kuala Lumpur.

On March 4, the government announced that its proposed tiered fuel subsidy had been scrapped after it received negative feedback from the people and that the current system of subsidising fuel would be maintained.

Meanwhile, Ismail Sabri said the ministry would also proposed to the Cabinet to lift the freeze on the issuance of licences for mini fuel stations in rural areas imposed in 2007.

"The rationale behind this is that we need to increase the number of mini fuel stations in the rural areas," he explained.

He said the proposal to lift the freeze on the issuance of licence, however, would also introduce new and stricter licence requirements.