KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry is expanding the sale of unsubsidised fuel to foreign-registered vehicles in Kelantan and other border towns in the country.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the decision was made following the positive results in the pioneer project to sell unsubsidised RON95 petrol and diesel in Perlis, which was introduced by the ministry in February.
Zahid said preliminary reports showed that the government saved about RM5 million in fuel subsidies and increased tax revenue from the sale of unsubsidised fuel to foreign-registered vehicles during the first two months of the pioneer project's implementation.
"Based on the data, the sale of subsidised fuel at 38 petrol stations in Perlis saw a reduction of 13.2 per cent for diesel and 15.7 per cent for RON95 petrol during the first two months of the pioneer project," Zahid said after chairing the National Action Council on Cost of Living here today.
He said data from the same reports showed that two petrol stations in Perlis involved in the pioneer project registered an increase of 14.75 per cent in the sales of unsubsidised diesel and 43.27 per cent and in the sale of unsubsidised RON95 petrol.
Zahid added that the commercial prices in Malaysia of unsubsidised RON95 petrol and diesel, which were RM3.05 per litre and RM3 per litre, respectively, were considerably lower compared with the prices in Thailand.
"Through engagements conducted by the ministry with agencies stationed at the Immigration, Customs, Quarantine, and Security Complexes in the country, it has been observed that there is a significant volume of traffic in the northern region of the peninsula.
"The ministry is finalising the implementation of non-subsidised fuel stations in Kelantan. Other states, such as Kedah, Perak, Sarawak, Sabah and Johor, will follow suit."
It was reported that the unsubsidised fuel stations
initiative was part of the government's effort to curb the smuggling of Malaysian subsidised fuel.
On a related matter, Zahid said 2,262,434 litres of diesel worth almost RM5 million had been seized up to Monday (May 15) since the government launched Ops Tiris on March 1.
He said 163 people, including 39 foreigners, had been arrested during the operation.