Thursday 10 December 2009

Foreign cars fuel limit

Foreign cars limited to 20 litres of fuel to curb smuggling

Foreign-registered vehicles will only be allowed to pump a maximum of 20 litres of fuel when travelling within a 50km radius from the border, said Domestic Trade, Co-operative and Consumerism Mini­ster Datuk Seri Ismail Sabri Yaakob.

Enforcement authorities at the checkpoints were also directed to ensure such vehicles leave the country with no more than 20 litres of fuel in the tank, he said.

Ismail added that the directive would be implemented soon.

Ministry officers were in the midst of issuing a circular on the matter to petrol stations in the affected areas in Kedah, Kelantan, Johor, Sabah and Sarawak, he said.

“This measure is to curb the increasing cases of fuel smuggling, as the prices for fuel are subsidised and cheaper in Malaysia compared to those prices set by neighbouring countries such as Thailand, Singapore and Indonesia,” he said.

Ismail said for RON 95, it was sold at RM1.80 a litre in the country compared to RM4.01 in Thailand, RM4.31 in Singapore, RM2.26 in Indonesia and RM5.42 in the Philippines.

“It is unfair if foreigners get to enjoy the fuel subsidy provided by the Government,” he told reporters at the Parliament lobby here yesterday.

He said the decision to limit the sale was made under the Control of Supplies (Prohibition of Export) 2000 Regulation.

Ismail warned that petrol station operators caught selling fuel exceeding 20 litres to foreigners risk facing action from the ministry, such as having their licences withdrawn.

In May 2008, the then Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad had barred petrol stations located in border states like Johor and Perlis from selling petrol and diesel to foreign-registered cars.

However, this ban was subsequently rescinded following complaints.

-News courtesy of The Star Online-

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