Fuel price hike: Subsidy still in force

By : Deborah Loh

PUTRAJAYA: The pump price for petrol is now RM2.70 per litre and diesel RM2.58 a litre following a cut in the fuel subsidy.
The increase of 78 sen per litre for petrol and RM1 a litre for diesel still leaves their prices 30 sen below the market rate.

Announcing the hike, Prime Minister Datuk Seri Abdullah Ahmad Badawi said a 30-sen subsidy per litre will prevail on pump prices, and will be used as an “automatic adjuster” in tandem with fluctuations in the world oil price.

The government will make the adjustments monthly.

To cushion the price increase, cash rebates will be given to owners of cars and motorcycles, based on engine capacity, through post offices from July 1.
These rebates will be given to owners of vehicles with road tax renewed between April 1 this year and March 31 next year.

Those who have already paid their road tax should produce their vehicle registration details at a post office and Pos Malaysia will issue them a money order.

Vehicles with large engine capacities will be levied a lower road tax from June 1.

The rebates will cost the government about RM5 million this year.

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