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PETALING JAYA: Diesel subsidy cut for commercial vehicles will hit consumers as operators will shift the extra fuel cost.

Pan-Malaysia Lorry Owners Association past president Er Sui See said he hoped the Government would reconsider its move to withdraw the subsidy.

The Domestic Trade, Cooperatives and Consumerism Ministry announced on Monday that subsidy for diesel given to nine types of commercial vehicles would be abolished effective June 1.

Prime movers, general cargo movers, box van, vans (panel van, semi-panel van and window van), rigid-lorry for bottled beverages, rigid lorry for flour transport, rigid lorry for refrigerated goods, water tankers and limousine taxis would no longer be allowed to purchase the fuel at RM1.48 per litre.

But, they can buy diesel at RM1.80 per litre at all petrol stations.

Without the subsidy, he said the average operation cost was expected to increase by RM700 per month.

On Monday, Pan-Malaysia Lorry Owners Association president Jong Foh Jit told a press conference that the sudden announcement had forced the operators to reschedule their work and increase charges in the last minute.

He said the charges had increased by 20% to 30%.

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http://thestar.com.my/news/story.asp?fi ... sec=nation

KOTA BARU: Several measures being considered to reduce the burden on the people when petrol subsidy is reduced includes abolishing or reducing road tax rate, said Domestic Trade, Cooperative and Consumerism deputy minister Datuk Tan Lian Hoe.

Another option being considered was providing subsidy for fuel amounting to between 150 and 200 litres, she added.

To reduce the government's burden, she said, fuel prices would be set to follow the market price.

“Last year alone the government paid RM8bil in fuel subsidy and this year it has escalated to RM18bil. We must consider all options to reduce the burden. But no final decision has been made,” she told reporters before visiting a petrol station here on Thursday.

“I want to assure the public that we are doing all we can to make it as painless as possible if the government decides to raise fuel price owing to the volatile market now,” she added.

She, however, said even if the government decided to raise the prices it would only be between the range of 5 to 10 sen.

Tan said her ministry had also enlisted Rela members to be stationed at 28 petrol stations near the Malaysian borders in an effort to curb the smuggling of subsidised fuel.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation