Malaysia’s fuel is no more for foreigners

In an attempt to restrain the increase cost of government subsidies, Malaysia has restricted sale of fuel to foreign motorists on its border. There are thousands of Singaporean and Thai motorists who cross border almost daily to get cheap petrol and diesel for their vehicles.

According to officials the ban will be effective from Friday and it is lifted as soon as oil prices can be adjusted at market level. Due to high government subsides there are some Asia’s lowest fuel prices in Malaysia.

Malaysia ‘s Deputy Prime Minister Najid Razik stated that it is taxpayer’s money that is used to subsidized petrol for those who are not allowed to get the subsidy. He further added that outsiders must not take advantage of our subsidy scheme.

Due to worldwide high oil prices this year, different subsides are predicted to cost the Malaysian government around 45bn ring it that comes to US$14bn.

The government is heeding over several measures, like selling diesel and petrol at market rates, to tackle the issue of rising subsides. There are also some other proposals like cash remuneration for Malaysian motorists and an identity cards based distribution system are also being considered stated Shahrir Samad, Malaysia’s trade minister.

Before the lifting of the ban if someone goes against the new ruling could be fined or have to put in jail.

Alang Zari Ishak who is president of a local petroleum dealers’ association called that decision a harsh one. He further added that this ban can cause bad effects on tourism and relations with neighboring countries

During the last week fuel prices were increased nearly 30% in Indonesia that urged fears of widespread unrest.

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