New regulations on sale of non-subsidised fuel to foreign vehicles soon - KPDN

KANGAR: The Ministry of Domestic Trade and Cost of Living (KPDN) is currently in the final stages of discussions to introduce new regulations on the sale of non-subsidised fuel in border areas.

Its secretary-general, Datuk Azman Mohd Yusof said the programme called 'Border Economy - Supply of RON95 Petrol and Diesel without subsidy' among other things, allowed the purchase of fuel by foreign registered vehicles in states bordering neighbouring countries.

"This step was taken to curb the issue (leakage) faced and does not have a negative impact on foreign vehicles that fill up fuel. The price of fuel without the subsidy (RON95 and diesel) is still cheaper than that sold in neighbouring countries," he said.

He was met by reporters after launching the first Bumiputera-produced Halipah Cooking Oil Packaging Factory by Adam AMG Trading in the state at Kompleks Wakaf Behor Lalang here, today.

According to Azman, the move to allow the purchase of fuel without subsidy was made as there were cases where foreign vehicles were detected filling up with subsidised diesel in limited quantities, but at multiple petrol stations.

He said the directive was issued by KPDN on June 17, limiting foreign registered vehicles to only fill up to 20 litres of RON95 and diesel.

RON97 can be sold without limit to foreign vehicles.

"The leakage of subsidised RON95 and diesel in the states near the border is taken seriously by the KPDN because the subsidies that should be enjoyed by the people of this country are also enjoyed by foreigners," he said.

Commenting further, he said the programme would start on a pilot basis in Perlis since there were commercial petrol station operators who sold fuel without subsidy in Padang Besar and Wang Kelian.

Azman said the ministry was currently negotiating with oil companies to also offer the fuel without subsidies in the state.

The pilot programme is expected to start in January and the impact study will be carried out within three months before a decision is made to roll it out in other border states.

-- BERNAMA