Plans for a fuel purse

  • Nation
  • Wednesday, 09 Jul 2008

THE Government is working on other mechanisms besides fuel rebates to help Malaysians face the onslaught of the rising global oil prices, Second Finance Miniser Tan Sri Nor Mohamed Yakcop said.

He said that among them was the creation of a fuel purse to enable those earning less than RM3,000 a month to purchase cheaper fuel using their MyKad.

He explained that about six months was needed before a comprehensive plan to reduce the financial burden to both the Government and the public due to the rising global oil prices could be implemented.

“However, things happened too quickly and the oil prices began to shoot up.

“Time was getting short and we decided to introduce a repayment system (rebates) to motorists as an immediate measure to cushion the impact of the reduction in fuel subsidies.

“The Government is now studying whether to extend the fuel rebate period or implement other systems in place of the rebate payment, which is implemented from April this year to March 2009,” he said in winding up the debate on behalf of his ministry on the Mid-Term Review of the Ninth Malaysia Plan.

Nor Mohamed also said there was no move to raise petrol and diesel prices until the end of the year despite the rising global oil prices.

He said the Government could have implemented popular measures to reduce the fuel price burden on the people but decided against it to protect the future generations.

He said the Government would face a lower credit rating and stricter financial regime if the country had decided to borrow large sums of money to lessen the impact of the rising oil prices.

“We cannot be borrowing from the IMF, which is regarded as an

Ah Long, and surrender our sovereignty to the organisation,” he


To a question from Wee Choo Keong (PKR - Wangsa Maju), Nor Mohamed denied that ECM Libra or any other private entity had a stake in the fuel rebate scheme being carried out by Pos Malaysia.

He also told Dr Mohd Hatta Ramli (PAS - Kuala Krai) that Pos Malaysia did not receive any commission from paying the fuel rebates to motorists.

“The Government is providing RM6.13bil in stages to Pos Malaysia to hand out the rebates to the applicants,” he added.

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