Tiered fuel plan officially scrapped, no increase for now.
PUTRAJAYA: The Government has officially scrapped its plan to restructure the fuel subsidy scheme based on the engine capacity of vehicles, Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob announced on Thursday.
He also said there would be no price increase for now.
The plan, originally set to be implemented on May 1, was to introduce a tiered pricing system for petrol, depending on engine capacity, while foreigners would have to pay the market price.
It called for the mandatory use of MyKad to differentiate Malaysians from foreigners, requiring the need for MyKad readers at petrol stations
Subsidised petrol would be capped to a certain amount of litres a month per user for owners of vehicles with engine capacities of below a certain threshold. The reported upper limit eligibility for the petrol subsidy is 2,000cc. Owners of cars with bigger engine capacities would be exempted from the subsidy.
However, many had considered the proposed scheme to be very unfavourable and cumbersome to enforce and some have suggested that the subsidy itself should be removed.
Source: The Star
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