Diesel subsidy slashed for 9 vehicle-types

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CHAM LIAO, transportation will increase soon. My wan tan mee last year RM 3.80, this year RM 4.30, coming mid JUne I think will be 4.80,


MY SALARY LEH???


May 16, 11 9:06pm
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The government will abolish the super subsidy for diesel given to nine types of commercial vehicles including limousine taxis, effective June 1.

The Domestic Trade, Cooperatives and Consumerism Ministry in a statement today said that based on the decision made by the National Economic Council on May 9, all the nine listed vehicles would no longer be allowed to purchase the fuel at a subsidised price of RM1.481 per litre.

However, the vehicles can still enjoy a subsidised price of RM1.80 per litre when refuelling at all petrol stations.

The nine types of vehicles are prime movers, general cargo movers, luton box van, vans (panel van, semi-panel van and window van), rigid-lorry for bottled beverages, rigid tanker lorry for flour transport, rigid lorry for refrigerated goods, water tankers and limousine taxis.

The abolishment of the subsidy is being effected following the rising prices of fuels recorded since October last year, which had caused an increase in the amount of subsidy borne by the government, the statement said.

"In line with the decision to abolish the super subsidy for diesel, the government is expected to save RM659.30 million in subsidy this year.

"However, the government will still have to bear RM116 million in subsidy for the public transportation sector," the statement said.

The move is also hoped to be able to control leakages and abuse of subsidised diesel by those who would sell the fuel to ineligible buyers.

The ministry said the subsidy given to other public transportation vehicles, however, remained unchanged.

- Bernama

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