Malaysia, which recently raised
fuel prices, is considering a ration system to sell a limited amount
of gasoline and diesel at subsidized rates, a news report said
Monday.
The ration system would replace the cash rebate that is currently
being given to owners of small and medium-sized cars to partly
compensate them for the price hike, The Star daily said, quoting two
Cabinet ministers.
Second Finance Minister Nor Mohamed Yakcop was quoted as saying
the government may issue a special card to motorists to buy the
subsidized fuel.
"We are still looking into this system as certain infrastructure
would be required for the subsidized fuel cards to be used," he was
quoted as saying.
The Malaysian government reduced fuel subsidies earlier this
month, raising the pump price for gasoline by 41 percent and diesel
by 63 percent.
To soften the impact on the middle-class and poor Malaysians, the
government also announced an annual cash rebate of 625 ringgit
(US$191) for owners of cars with engine capacity of less than 2,000
cc and a 150 ringgit (US$46) rebate for motorcycle owners.
But post offices across Malaysia, entrusted with handing out the
cash, were inundated with massive crowds when the system went into
force on Friday.
"We are talking about rebates for 500,000 cars a month and that
does not even include motorcycles," Domestic Trade and Consumer
Affairs Minister Shahrir Samad was quoted as saying by The Star.
"Surely there can be a better system of dispensing subsidy to
vehicle owners ... we have to work on it."
Any changes would be made after the current one-year rebate
period, Shahrir said.
Aides of Nor Mohamed and Shahrir confirmed the comments. They
declined to be named citing protocol.
Gasoline now costs 2.70 ringgit ($0.87) a liter, or $3.30 a
gallon, at pumps. Still, petrol prices in Malaysia - a net oil
exporter - are lower than in most other Southeast Asian countries.
Since the increase, opposition parties and non-governmental
organizations have staged scattered protests throughout the country
and are preparing for a mass rally on July 5.
Prime Minister Abdullah Ahmad Badawi has defended the decision to
raise fuel prices, saying the government can no longer afford the
subsidies due to rising world oil prices. However, he has promised
not to raise pump prices this year. (*)
