S'pore motorists unfazed about hike in fuel prices in Malaysia

[Ginchiyo Tachibana]

<table border="0" cellpadding="0" cellspacing="0" width="789"><tbody><tr> <td colspan="3" height="26"></td> </tr> <tr> <td valign="top" width="5"></td> <td colspan="2" valign="top" width="784"> S'pore motorists unfazed about hike in fuel prices in Malaysia
By Claire Huang, Channel NewsAsia | Posted: 08 January 2010 2322 hrs
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SINGAPORE: Singapore motorists making their way across the Causeway to top up diesel and petrol will have to pay 12 Singapore cents more per litre.

This follows an announcement by the Malaysian government to scrap all fuel subsidies for foreign-registered vehicles, with effect from May.

Malaysians, on the other hand, will see a tiered-pricing structure, with smaller cars getting higher subsidies.

Under this move by the Malaysian government, Singaporeans will have to pay about 87 Singapore cents for every litre of 95 grade petrol - up from the current 75 Singapore cents.

Still, it is cheaper than the S$1.80 they currently pay for every litre of petrol in Singapore.

Currently, foreign-registered vehicles can buy only 20 litres of fuel from stations located within 50 kilometres of the Malaysian borders. But Malaysian authorities said this will be lifted once the new system kicks in.

The measure was originally put in place to curb the sale of subsidised fuel to foreigners. And since Malaysian petrol is no longer subsidised for foreigners, Singapore motorists feel the authorities here should do away with the three-quarter tank rule.

The Malaysian government's move is an attempt to trim its budget deficit, which exceeded some seven per cent last year. The new measure is expected to shave some S$827 million off its fuel subsidy debt.

- CNA/sc


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