Ban on fuel sale lifted at borders

The government has decided to do away with the ban on the sale of fuel to foreign-registered vehicles up to 50 km inside the country from its borders with Thailand and Singapore. The ban, which came into effect on June 2 at the border with Thailand, was lifted on June 5. Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad disclosed this after Prime Minister Datuk Seri Abdullah Ahmad Badawi announced an increase in fuel prices nationwide effective midnight June 4. Shahrir said that with the restructured fuel subsidy scheme and higher fuel prices, the ban on the sale of fuel to foreign-registered vehicles along the border with Thailand and Singapore was no longer deemed necessary. “When I proposed the ban, foreign vehicles were enjoying government subsidies meant for Malaysians,” he told reporters. Thousands of Thais and Singaporeans drive into Malaysia every day to fill their tanks and take advantage of lower prices due to the subsidies, which were expected to cost the government 45 billion ringgit (US$13.77 billion) this year. Abdul Wahid Bidin, acting president of the Petroleum Dealers Association of Malaysia, said 90% of the usual customers of some fuel stations near the border were from Thailand. (June 2/5, 2008)