Two-tier price structure for petrol from May 1

Domestic Trade and Consumer Affairs Minister Ismail Sabri Yaakob has said there will be two price structures for petrol from May 1 - one for Malaysians and another for foreigners.

According to Ismail, the price of petrol will also be based on engine capacity, which means that not all Malaysians would be entitled to subsidised fuel. Instead, different petrol prices would be introduced for different groups of consumers.

“For RON95 petrol, the Goverment’s subsidy is 30sen per litre now. The current price of RON95 petrol is RM1.80 compared to the actual price, which is RM2.10,” Ismail told reporters.

“So, Malaysians who are not eligible for the subsidy and also non-citizens will have to pay RM2.10 or more.”

My-Kad required

Further information on the new structure would be announced on May 1, 2010. Once introduced, it may be compulsory for petrol purchasers to show or use their My-Kad.

“We have Thai nationals who drive into Malaysia to fill up their tank as they don’t receive any subsidy, which makes petrol such an expensive commodity there,” he said.

“As for Malaysian, the main categories will then be divided into sub-categories such as the engine capacity of the vehicles used and other factors such as socio-economy.”