Dateline 2014-10-14, Malaysia Reserve:
The government expects to cut down substantially its fuel subsidy bill with the proposed fuel price mechanism that could differentiate between eligible and non-eligible buyers at the pump.
Finance Ministry Secretary General Tan Sri Dr Mohd Irwan Serigar Abdullah said the fuel subsidy mechanism that will be introduced before the end of the year will weed out those not eligible for subsidy.
Under the present blanket fuel subsidy, non-eligible motorists including foreign vehicles are also enjoying the subsidy.
Mohd Irwan said the recent reduction of 20 sen per litre in fuel subsidy will save the government about RM1 billion per month from October, which translates to RM4 billion in total for 2014.
“We do not expect to collect as much savings from that unless we introduce this new and more targeted fuel subsidy mechanism soon,” he said in Kuala Lumpur yesterday.
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Wata - Malaysian Oil and Gas Engineer 