Malaysia moves to stop fuel subsidy abuse

business June 30, 2014 00:00

By The Star/Asia News Network

The Malaysian government will set a fixed volume of diesel that petrol stations can sell in a move to curb abuses of the country's fuel subsidy scheme

Petrol station operators would also need to submit monthly reports of their diesel and RON 95 petrol sale to the Domestic Trade, Cooperative and Consumerism Ministry, said its secretary-general Datuk Seri Alias Ahmad.
This was among a slew of measures being introduced nationwide starting August 1 in a bid to prevent further abuses of the subsidy scheme.
Alias warned that erring traders would be permanently blacklisted.
Petrol station operators found to be involved in the abuse of the fuel subsidy would be banned from carrying out transactions with his ministry, he said.
“This is an internal matter We don’t need to pass any law,” he told reporters yesterday.
Alias said the ministry would immediately freeze the licences of petrol station operators who would be caught illegally selling subsidised fuel and the respective petroleum companies would have to take over the daily running of these businesses.
A similar measure was already implemented in Kedah and Kelantan, he added.
He also noted that the ministry would fix the amount of diesel that each petrol station could sell instead of the respective petroleum companies as was currently practised. 
Also, all tanker lorries transporting subsidised fuel would be required to be painted blue with the words “Minyak Subsidi” on them from Jan 1.
He said holders of fleet cards such as taxi drivers, mini and school bus operators would have to seek approval from the ministry for additional quota once they had exhausted their respective allocated amount of super subsidised fuel.
In addition, a 600,000-litre monthly limit had been placed on the amount of diesel that the 72 petrol stations in Sabah’s east coast could sell from July 1.
Alias said the operators could seek a further quota if the need arises.