KUALA LUMPUR: The introduction of Euro 5 petrol in September next year will not affect the cost to consumers, said Natural Resources and Environment Sustainability Minister Nik Nazmi Nik Ahmad.
Nik Nazmi reassured that the cost of petrol would continue to be influenced only by market factors, without added charges due to the specification enhancement.
"Over the years, we regularly make changes like this, typically year by year, upgrading the fuel specification.
"For example, diesel has just recently been upgraded to Euro 5. So, when this is done, it is an investment that needs to be made, but not by the oil companies or consumers.
"This is ongoing and does not affect the market price of petrol," he told the media at the signing ceremony between Beverly Group, Samjung Tech and Parktech Solutions here today.
Nik Nazmi said the transition is necessary to ensure that emissions are reduced and fuel quality is improved, without burdening the public financially.
"The system the government wants to implement right now is to maintain the price for next year - for about 85 per cent of the population.
"And we are in the process of finalising a system for individuals in the top 15 per cent income (T15), who will pay according to the market price. It is based on that system," he added.
Commenting on the rare earth elements (REE) industry, Nik Nazmi said the country's REE resources do not contain radioactive elements, a common worry among environmental groups.
He said the past concerns had revolved around the Lynas facility, which imports rare earth materials from Australia.
"Even then, radiation levels were low and we regulated it through licences by the Atomic Energy Licensing Board (AELB).
"The main issue here is that we want to reduce carbon emissions, shift to electric vehicles, and transition to renewable energy. For that, we need rare earth elements," he said.
He added that while strict regulatory measures are necessary, Malaysia cannot afford to dismiss the REE industry entirely due to potential negative impacts.
"I agree we need strict control and regulation - that is a requirement we are committed to. But to say we should not pursue this industry at all because of some negative impacts, I disagree.
"We need rare earth elements if we are to have a sustainable future," he added.