Petrol up 30 sen

Nation
Tuesday February 28, 2006
Petrol up 30 sen

KUALA LUMPUR: The price of petrol and diesel is up by 30 sen a litre effective today, the highest increase in the past two years.
However, the Prime Minister's Department, in a statement, said that this would be the only increase for the year.
Public transport and commercial vehicle operators only face a 15 sen rise for diesel.
“The Government has decided to introduce a direct subsidy for these operators, making up 84% of diesel users, through a fleet card scheme,” the statement stated.
“With the card they will be able to buy diesel at 15 sen less per litre than the new price.
“The Domestic Trade and Consumer Affairs Ministry has sent out letters to the operators who qualify for this scheme.”
The Prime Minister's Department also said the savings from the price increase would be used “to pay for development projects and improving the public transport system for the benefit of all people.”
The decision to increase the price of fuel was to overcome the impact of rising crude oil prices and to curb the increase in subsidies paid by the Government.
The announcement was made in a statement from the Prime Minister's Department at 10.30pm yesterday.
The retail price for petroleum products is being raised because last year the amount of subsidy borne by the Government was RM7.41bil whereas tax exemption stood at RM7.85bil.
“The burden of subsidy and tax exemption borne by the Government from January to February this year was RM1.19bil and RM1.44bil respectively,” the statement said.
The statement said that without the government's subsidy and tax exemption, the retail price of these products in March would have been higher.
Without the subsidy and tax exemption, the price of RON 97 in the peninsula would be RM2.46 a litre, RON 92 RM2.37 a litre, diesel RM1.98 a litre and LPG RM3.21 a kg.
In Sabah, RON 97 petrol without subsidy and tax exemption would be RM2.45 a litre, RON 92 RM2.37 a litre, diesel RM1.97 a litre and LPG RM3.35 a kg.
In Sarawak, the price of RON 97 petrol without subsidy and tax exemption would be RM2.45 a litre, RON 92 RM2.36 a litre, diesel RM1.97 a litre and LPG RM3.34 a kg.
“Although the Government is raising the price of petroleum products, diesel and LPG, the price of petrol and diesel in Malaysia is still cheaper than in other Asean countries except Brunei,” the statement said.

source: http://thestar.com.my