PRICE WATCH: New fuel subsidy to be based on need - NST

By : Marc Lourdes

KUALA LUMPUR: Fuel prices are likely to go up in August when a new subsidy system is put in place.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said under the new system, fuel would be subsidised based on need rather than usage.

"The fuel subsidy for this year is expected to top RM56 billion as petrol and diesel is subsidised by about RM2 per litre," he said at a press conference in the Parliament lobby yesterday.

"We have to find the best way to handle the subsidy issue because if it is not managed properly, usage will just go up.

"If there is no control and no encouragement to reduce usage, our subsidy cost will go up.

"At the moment, the more you use, the more you get. That doesn't sound like a subsidy system."

[More at http://www.nst.com.my/Current_News/NST/Tuesday/Frontpage/2256802/Article/index_html]