Skip to main content
BBC NEWS / ASIA-PACIFIC
Graphics VersionBBC Sport Home
News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |
15:36 GMT, Tuesday, 27 May 2008 16:36 UK

Malaysia fuel ban for foreigners

Motorists fill up their vehicles with gasoline at a petrol station in Subang, Malaysia, Tuesday, May 27, 2008

Malaysia is to restrict fuel sales to foreign motorists on its borders in an attempt to curb the spiralling cost of government subsidies.

Hundreds of Thai and Singaporean motorists cross the border every day to fill up on cheap petrol and diesel.

The ban, due to take effect on Friday, will be lifted as soon as prices can be set at market level, officials said.

Malaysia has some of Asia's lowest fuel prices due to high government subsidies.

"Taxpayers' money is being used to subsidise petrol for those who are not entitled to receive the subsidy," Malaysia's Deputy Prime Minister Najib Razik said.

"[Foreigners] should not take advantage of our subsidy scheme," he added.

Subsidies are expected to cost the Malaysian government 45bn ringgit (US$ 14bn; £7bn) this year as oil prices rise worldwide.

The government is considering a series of measures to address the problem of rising subsidies, including selling petrol and diesel at market prices.

Malaysia's trade minister Shahrir Samad said other proposals included cash remunerations for Malaysian motorists and a distribution system involving identity cards.

Until the ban is lifted, those who break the new ruling could be fined or face a jail term.

"It's a very harsh decision," Alang Zari Ishak, president of a local petroleum dealers' association, told the Associated Press News Agency. He added that the ban may affect tourism and relations with Malaysia's neighbours.

The Indonesian government last week raised fuel prices by nearly 30%, prompting fears of widespread unrest.



E-mail this to a friend

RELATED INTERNET LINKS
BBC Indonesian Service
The BBC is not responsible for the content of external internet sites



SEARCH BBC NEWS: 

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |

NewsWatch | Notes | Contact us | About BBC News | Profiles | History

^ Back to top | BBC Sport Home | BBC Homepage | Contact us | Help | ©