KUALA LUMPUR: 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 yesterday, said based on the decision by the National Economic Council on May 9, all the nine listed vehicles would no longer be allowed to purchase the fuel at the subsidised price of RM1.481 per litre.
However, the vehicles can still enjoy a subsidised price of RM1.80 per litre when refuelling at petrol stations.
The nine types of vehicles are prime movers, general cargo movers, luton box van, vans (panel vans, semi-panel vans and window vans), 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 was made following an increase in fuel price since October last year, which caused a rise 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 for the public transport sector."
The move would control leakages and abuse of subsidised diesel by those who sell the fuel to ineligible buyers.
The ministry said the subsidy given to other public transport vehicles, however, remained unchanged. -- Bernama
[via - http://www.nst.com.my/nst/articles/06subs/Article/]
