Government bans sale of fuel to foreign cars this Friday

KUALA LUMPUR, May 26 (Bernama) -- The government has decided to ban all petrol stations at the country's borders from selling petrol and diesel to foreign cars beginning Friday.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said at the Malaysia-Thailand border, the ban involved petrol stations that were 30-50km from the border.

He said the ban covered Perlis, Kedah, North Perak, Kelantan and several districts in Johor including Kulai and Johor Baharu.

"A written directive regarding the ban under the Control of Supplies Act 1961 will be issued to 200-300 petrol station operators in the near future," Shahrir told reporters at the Parliament lobby after attending a meeting of the Cabinet Committee On Inflation at Parliament House.

The meeting was chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak.

He said the ban would be in force until his ministry could determine an appropriate subsidy management system to block "optimistic" buying and selling. "This move is a stern act by the government to reduce the leak in subsidy that involved high cost and which should actually be enjoyed by the lower-income group in the country.

He said his ministry's officers will be deployed at the stations concerned to monitor and act if there were station owners who flouted the ban.

The penalty for flouting was a fine up to RM250,000 or three years jail or both, he said.

Shahrir said the matter was brought up in the meeting which agreed to stop what was being practised at the northern border where cars from Thailand came to buy petrol and diesel.

He said the suggestion by the Federation of Malaysian Consumers Associations (Fomca) that petrol subsidy be given based on the size of the engine was also being considered.

Bernama
27/05/08