Crazy idea?

By Simon Peter

KUCHING, June 3, 2014:  PKR Stampin branch secretary Desmond Kho thinks it is utter idiotic to charge people earning over RM5,000 a month and driving a 2,000 CC vehicle more for petroleum RON95.

"But then again what can you expect from the Barisan government?" he asked at a press conference.

He said it is illogical for the government to allow only those earning less than RM5,000 and driving a vehicle with less than 2,000 CC engine capacity to buy RON95 while those earning more than RM5,000 and driving a 2,000 CC engine capacity or more to go for the more expensive RON97.

He said it is difficult for the government to enforce who is eligible and who is not, simply based on the engine capacity of a vehicle.

He said a person driving a vehicle with less than 2,000 CC engine capacity does not mean that he is earning less than RM5,000 a month or a person driving a vehicle with over 2,000 CC engine capacity does not mean that he is earning more than RM5,000.

Kho was commenting on a report in the Chinese language Sin Chew Daily that the government would introduce a new fuel subsidy scheme once it was rolled out in September this year.

The newspaper reported in its evening edition yesterday that these are expected to be the criteria to determine who will be eligible for subsided petrol and who will not. It applies to both private and company-registered vehicles alike.

Those earning between RM5,000 to RM10,000 a month will reportedly be getting subsided fuel as well, but may be limited to 300 litres of RON95 petrol and diesel.

300 litres of RON95 and diesel is worth RM630 and RM600 at subsidised prices.

Foreigners, foreign-registered vehicles, and those earning above RM10,000 may not be eligible at all, and may have to buy petrol at market prices, the report stated.

However, the daily quoted an unnamed Domestic Trade, Cooperatives and Consumerism Ministry official as saying that these details have yet to be finalised.

There is still some time before the September implementation, the source reportedly said, and the ministry is still studying feedback from stakeholders.

Bernama earlier reported that the government will introduce a new systenm for distributing subsidised fuel beginning Sept 1 to ensure the sale of subsidised diesel and petrol is only to eligible commercial vehicles.

A similar system will be introduced for private vehicles in October or November, with details to be announced later.

The government is targeting savings for RM9.8 billion through the new system.

Meanwhile, the anonymous source reportedly told Sin Chew that the government is also studying whether to upgrade the MyKad to facilitate the distribution of the subsided fuel.

The alternative being studied is for relevant ministries such as the Transport Ministry and Finance Ministry to issue a special card for eligible vehicle owners.

“The card will have the vehicle owner’s name, address, monthly fuel quota, etc. When the vehicle owner arrives at the pump, he would have to swipe his car first before filling up.

“If his monthly quota is up, then he would have to buy RON95 or diesel at market price,” the source reportedly said, adding that the card would also help the government track the owner’s consumption of subsided fuel.