Monday, June 02, 2008

PM: Govt to announce new fuel subsidy Wednesday

KUALA LUMPUR: The government will announce on Wednesday a new fuel subsidy, Prime Minister Datuk Seri Abdullah Ahmad Badawi said Monday.

The decision on the fuel subsidy will take effect immediately to avoid any speculation, he told reporters after chairing the National Small and Medium Enterprise Development Council here.
"We need to look into it (fuel subsidy) again to make sure it will the best that we can do for our people," Abdullah said. He said this when asked to comment on Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad's statement that fuel price will go up this August.

"He said might be. Anything to do with (fuel) subsidy, the final decision will be this Wednesday," Abdullah said.

According to Shahrir, the increase in fuel prices is in line with the structuring of the new mechanism for the fuel subsidy scheme enjoyed by the people now.

He was reported as saying that there were already several proposals and the mechanism had been submitted to the Finance Ministry and it would be decided in the best manner.

Although the fuel price would go up, Shahrir said the petrol subsidy would continue to be enjoyed by the people based on requirement instead of usage.

Abdullah also said that the Committee on Inflation would meet Tuesday to finalise the various proposals for final consideration by the Cabinet. - BERNAMA