Tuesday May 27, 2008

Border towns: No petrol sales to foreign cars

By SIM LEOI LEOI and MEERA VIJAYAN

KUALA LUMPUR: Petrol stations located in border states like Johor and Perlis will be barred from selling petrol and diesel to foreign-registered cars starting Friday.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the move, aimed at plugging loopholes in the current subsidy system, was decided during an anti-inflation committee meeting yesterday.

The ban will involve between 200 and 300 petrol stations in Kedah, Kelantan, Perlis, Perak and the Johor Baru and Kulai areas in Johor.

Currently, petrol stations are not allowed to sell more then 20 litres of petrol to foreign vehicles.

“This move is temporary until we come up with better management of our subsidy system,” he told reporters.

At present, Shahrir said too many foreign-registered cars, particularly those from neighbouring countries, had been crossing into Malaysia to take advantage of the lower fuel and diesel prices.

“I have been instructed to use my power under the Control of Supply Act to direct and ban the sale of subsidised fuel to these foreign cars. This applies to petrol stations located as far as 50km from the border,” he said.

Besides the northern states and the Johor Baru and Kulai areas of Johor, Shahrir said he was also studying if the ban should include petrol stations in Pontian.

He said the petrol stations would be notified by the ministry to adhere to the move.

Shahrir said that besides putting up signboards informing motorists of this new ruling, enforcement officers would also be stationed at the petrol stations to ensure businesses complied with the ruling.

“I will inform my officers about this latest decision and it will take effect by Friday or the latest Monday,” he said.

Shahrir said those caught flouting the ruling could be fined up to RM250,000.

However, he said foreign-registered vehicles which entered the country for tourism purposes could still fill up their tanks in places like Penang and Malacca where the ban would not apply.

“They should enter the country with full tanks and they have to plan their journey,” he said.

In Johor Baru, petrol station owners and managers were shocked with the announcement.

Petrol dealer Andy Wong said such a decision had huge implications on petrol station owners as a large number of stations situated near the Causeway depended heavily on their Singaporean clientele.

“If it is within 50km, then the whole of Johor Baru is affected,” he said when met at his station last night.

Other petrol station owners said they were awaiting more information.

One petrol station manager, whose station services hundreds of Singapore-registered vehicles daily, said: “So far, talks have only been about petrol subsidies. This has never been spoken about.”

He said petrol station owners had not been consulted about the matter.

Tuesday May 27, 2008 MYT 5:41:45 PM

Subsidies should benefit the rakyat, not foreigners

By ELIZABETH LOOI

KUALA LUMPUR: Petrol station dealers have been reminded not to only think about making a profit by selling subsidised petrol to foreigners.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said every litre of the petrol sold is subsidised with the people’s money and not the Government’s.

He said the dealers had to get out of the paradigm of relying on selling subsidised products, as they had been doing it for some time and had profited.

“They must realise that in this situation, the subsidies should benefit the people fully and not foreigners.

“Instead of using the excuse of cari makan (making a living), this is the opportunity for them to show how much they appreciate and love the country and its natural resources,” he told reporters Tuesday at the Parliament lobby.

Shahrir was asked to comment about complaints from some dealers who had to rely solely on foreign cars for business, especially those who were located nearer to the borders.

Many of the dealers were unhappy when Shahrir announced on Monday that dealers in border states such as Perlis and Johor were not allowed to sell petrol to foreigners within the radius of 50km from the border.

He said the move was aimed at plugging loopholes in the present subsidy system.

On suggestions to sell petrol at international market rate to foreigners, Shahrir said the Government would eventually implement such a system when they sort out the subsidy management system.

“With a more comprehensive system, we will see that the prices will be based on market price and the subsidies will be channelled to the targeted group,” he said.