PADANG BESAR: The non-subsidised fuel stations initiative implemented in Perlis to stem smuggling of Malaysian subsidised fuel will be expanded to the other international border towns in the country.
Domestic Trade and Cost of Living minister Datuk Seri Salahuddin Ayub said he would present the proposal to the Cabinet soon, following the positive outcome of the pilot project in Perlis.
"I have received information from our officers (from the ministry) that vehicles, especially pick-up trucks and lorries from the neighbouring country have started travelling to the east coast state (Kelantan) since there are not many non-subsidised petrol stations yet over there.
"Hence, I believe that it is the best solution to plug annual losses of RM150 million from subsidised fuel leakages if we set-up more non-subsidised fuel stations in the east coast," he told reporters after launching a non-subsidised fuel station pilot project in Kampung Kolam Industrial Area today.
Another similar fuel station under the initiative is located in Wang Kelian.
Non-subsidised RON95 petrol is sold at RM3.22 per litre while the non-subsidised diesel is sold at RM3.45 per litre at both stations.
Salahuddin said the ministry would evaluate the success of the pilot project before expanding it to the states with international borders such as Kedah, Kelantan, Johor, Sabah and Sarawak.
He added that the move would be more economical and practical to plug the leakage of government fuel subsidies through cross-border smuggling activities and if we do it right, we may even impose a Sales and Services Tax (on the sales of non-subsidised fuel).
"In fact, it will create a healthy price competition among the unsubsidised fuel station operators since they are selling unsubsidised fuel," he said.
Salahuddin said the ministry had recorded 43 arrests involving subsidised fuel smuggling activity in Perlis with a total market value of some RM100,000.