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Published: Thursday January 7, 2010 MYT 4:04:00 PM
Updated: Thursday January 7, 2010 MYT 5:59:29 PM

Two price structures for petrol from May 1 (Updated)

newsdesk@thestar.com.my

PETALING JAYA: There will be two price structures for petrol from May 1 -- one for Malaysians and another for foreigners -- Domestic Trade and Consumer Affairs Minister Datuk Seri Ismail Sabri Yaakob said on Thursday.

For Malaysians, the price of petrol will also be based on engine capacity, which means that not all would be entitled to subsidised fuel, he added.

Different petrol prices would be introduced for different groups of Malaysians, Ismail told a press conference here on Thursday after launching the new corporate identity of the F&N Soft Drinks Division.

Amongst the things that would be considered are the engine capacity of vehicles and socio-economic factors, he said.

He said that the subsidy for petrol would be retained but only targeted groups would receive the subsidy.

“The categories will then be divided into sub-categories such as the engine capacity of the vehicles used and other factors such as socio-economy,” he said.

“For RON95 petrol, the Goverment’s subsidy is 30sen per litre now. The current price of RON95 petrol is RM1.80 compared to the actual price, which is RM2.10.

“So, Malaysians who are not eligible for the subsidy and also non-citizens will have to pay RM2.10 or more,” he added.

Besides introducing the new structure, the ministry also plans to make the usage of My-Kad compulsory when buying petrol to identify one’s nationality.

“We have Thai nationals who drive into Malaysia to fill up their tank as they don’t receive any subsidy, which makes petrol such an expensive commodity there,” he said.

Further information on the new structure would be announced on May 1, 2010.

Umno deputy youth chief Khairy Jamaluddin, who first broached the subject in 2007 when debating the economic resolution before the last general election, had said that the subsidy must reach only the people who most needed it.

The current method was tantamount to a misallocation of funds, he had said.

Meanwhile, the subsidies on flour, sugar and gas would be retained, announced Ismail.

“Although the price for sugar has increased by 20sen, the Government is still footing the 80sen subsidy on sugar,” he said.

Ismail later conducted spot checks on several stores and eateries in the area to check on whether they had increased the price of food items after the increase in sugar price.

He said that the 20sen increase in sugar price should not be taken advantage of by food outlet operators.

“Food outlet operators should not regard this as an opportunity to increase the prices of food items,” he said.

Related stories:
Ministry looking into cross-subsidy to keep fuel prices down (2007)

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