Perlis pilot project saves RM6 mil in fuel subsidy

KUALA LUMPUR - The implementation of the pilot project of petrol stations without subsidies at two stations in Perlis since February has helped to save almost RM6 million in the government's fuel subsidy allocation.

"In the first two months, there was a decrease in sales of diesel and RON 95 at subsidised stations with savings of RM1.77 million and RM3.98 million respectively, and at the same time at non-subsidised petrol stations there was an increase (in sales) of diesel and also RON 95.

"What it means is that foreign vehicles 'self regulate' because fuel prices in Thailand are more expensive. So no matter what they come and buy in our country even without subsidies (because) the price is cheaper than in their country," she said during a question and answer session at the Dewan Negara today.

She said this in replying to a question from Senator Hussin Ismail who wanted to know in detail about the mechanism for implementing petrol stations without subsidies as well as the mechanism for controlling subsidised fuels.

The two petrol stations involved in the pilot project are located in Padang Besar and Wang Kelian.

Meanwhile, Fuziah said the Domestic Trade and Cost of Living Ministry also implemented the Ops Tiris operation as another mechanism to control leakage of fuel subsidies.

"During Ops Tiris carried out from March 1 to May 31, a total of 6,571 inspections were conducted in which there were 221 cases with seizures valued at RM5.41 million and 198 arrests," she said. - BERNAMA