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KUALA LUMPUR - Owners of foreign-registered vehicles will have to pay more for petrol in Malaysia under a plan to curb spiralling fuel subsidies, reports said Thursday.
Second Finance Minister Nor Mohamed Yakcop said the measure was part of a fuel subsidy reform plan to be announced before the 2009 national budget, which is expected to be presented to parliament in September.
The government earlier this week announced an interim measure banning petrol stations near the borders with Thailand and Singapore from selling fuel to foreign-registered vehicles.
The new initiative to permit sales to foreigners, but at a non-subsidised price, is likely to be approved at a Cabinet meeting on Friday, the official news agency Bernama reported.
Despite dismay over the plans from tourism operators who rely on business from Singaporeans and Thais who make trips to shop and refuel in Malaysia, Nor Yakcop insisted the industry would not suffer.
"No it wouldn't. Tourists who come in, they can certainly buy (petrol) in non-border towns ... there is no problem but in the border towns ... there has been absolute misuse by people along the border who come and buy and go off to sell back (the petrol) to their country," he told Bernama.
"Why should we give subsidies to foreign smugglers," he added.
The move is an attempt to minimise fuel subsidies which is expected to cost Malaysia 45 billion ringgit this year based on an oil price of US$120 per barrel.
"Foreigners will definitely have to pay the full price when we make the announcement and (when we) enforce it immediately," Prime Minister Abdullah Ahmad Badawi said in The Star daily Thursday. - AFP/ir
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