Does this mean that the subsidy rebate system was not well thought of when it was initiated? When will the Malaysian government do a thorough planning before it comes out with the it. Sounds like another flip-flop again. Better get the cash rebate first before they stop it.

Monday June 16, 2008

Fuel card plan to improve subsidy rebate system

By RUBEN SARIO and MEERA VIJAYAN

KOTA KINABALU: The Government is looking at adopting a system whereby motorists can buy a fixed amount of subsidised fuel each month and pay for the rest at market rate.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the system includes providing Malaysian motorists with a special card for buying subsidised fuel.

“We are still looking into this system as certain infrastructure would be required for the subsidised fuel cards to be used,” he said, adding that the RM625 cash rebate for motorists was the best and fastest approach the Government could take to cushion the recent 41% hike in fuel prices.

Touching on the same subject, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the fuel subsidy rebate system would be fine-tuned for the convenience of the people.

He said that various options were being studied, including the possibility of using a fleet card system.

“For example, under the fleet card, you would get your rebate at the petrol pumps as and when you purchase your fuel instead of having to queue up at post offices,” he said.

Shahrir pointed out that the present cash rebate system was not the perfect long-term solution, judging from the crowds of people rushing to collect their rebates.

“We are talking about rebates for 500,000 cars a month and that does not even include motorcycles.

“Surely there can be a better system of dispensing subsidy to vehicle owners,” he told The Star.

Shahrir said that as this was the first time the rebates were being given, there was plenty of room for it to be upgraded and improved upon.

“We don’t know whether it will be continued or not. Maybe my Cabinet colleagues are satisfied with it, but we have to work on it,” he said.

He declined to comment on other suggestions, preferring to make the announcement once it was finalised.

Motorists all over the country crowded post offices on Saturday as they scrambled for the RM625 fuel subsidy rebate for cars and RM150 for motorcycles.

By the end of the day, RM116.7mil had been collected by almost 240,000 motorists from 683 post offices.

Meanwhile, a fleet card system presently exists for public transportation operators who use the card to buy diesel at subsidised rates.

The system was introduced to curb diesel smuggling and the illegal sale of the fuel.