KUALA LUMPUR: A pilot project on unsubsidised RON95 petrol and diesel supply project at petrol stations will be implemented under the Border Economy Programme in Padang Besar and Wang Kelian, Perlis, says Datuk Seri Dr Ahmad Zahid Hamidi.
The Deputy Prime Minister said the project handled by the Domestic Trade and Cost of Living Ministry will save the government petrol subsidy allocations.
He added the project is estimated to increase the country’s income through the sales tax imposed on foreign vehicles.
“Preliminary reports on the project found that sales data for subsidised petroleum products showed a decrease of 13.2% for diesel, and 15.7% for RON95 at 38 gas stations in Perlis for the first two months since the programme started.
“This provided the government with subsidy savings worth RM5mil.
“The two non-subsidised fuel stations in Perlis saw an increase in sales of 14.75% for diesel, and 43.27% for RON95,” he said in a press conference after chairing the National Action Council on Cost of Living (Naccol) meeting at Kuala Lumpur Convention Centre on Thursday (May 18).
Ahmad Zahid said the Domestic Trade and Cost of Living Ministry is in the final stages in expanding the unsubsidised petrol stations scheme, especially in Kelantan, with Kedah, Perak, Sabah and Sarawak as well as Johor to follow suit.
“The findings from the engagement sessions between the ministry and enforcement agencies at the Immigration, Customs, Quarantine and Security Complex (ICQS) found that the flow of foreign vehicle traffic is high, especially in the northern part of the peninsula,” he said.
Ahmad Zahid said a total of 6,095 inspections were carried out across the country throughout the implementation of Ops Tiris from March 1 until May 15.
“A total of 183 cases were reported (for smuggling) with a seizure value of 2,262,434 litres of diesel, estimated to be worth RM4,933,692.
“A total of 163 people involving 124 local citizens and 39 foreign nationals were arrested during the ops,” he said.