Fuel subsidy quota may be increased: PETROL AND DIESEL
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the directive for a review was given by Prime Minister Datuk Seri Abdullah Ahmad Badawi in response to a request by transport companies.
"The prime minister has directed the relevant ministry to look into increasing the fleet card quota for transport companies," he said.
Currently, only 30 per cent of vehicles owned by transport companies are entitled to the fuel subsidy, prompting them to raise fares.
Nor Mohamed said the government would continue to give priority to improving the transport sector despite the financial burden of the fuel price increase.
Easing traffic congestion was crucial to raising productivity.
He said besides improving public transport in urban areas such as the Klang Valley, Penang and Johor Baru, the government will also strive to build more roads in rural areas.
To another question, he said the National Heritage Fund now stood at RM5 billion with Petronas contributing RM100 million every year to the fund.
He said the fund was necessary for the benefit of the future generations. Revenue generated by Petronas was invested in activities that would bring long-term benefit to the country and its people.
In Johor Baru, Deputy Entrepreneur and Cooperative Development Minister Datuk Saifuddin Abdullah said the ministry was finalising a comprehensive study on bus fares. The study would be finalised within a month.
"The government understands the situation and is aware of the difficulties faced by bus operators. The ministry is working on a comprehensive study on how to tackle the issue."
The last fare increase for bus operators was in 2005.
"The government, however, feels that we should safeguard the interests of the general consumers before deciding on the right fare hike."
Saifuddin said the hike in fuel prices was not the only issue faced by bus operators.
Fuel makes up between 28 and 32 per cent of the operation cost of bus operators.
Saifuddin said operators of express, stage and school buses were involved in the study.
He said this after presenting certificates to 650 students who had completed vocational training at Johor Skills Development Centre (Puspatri) at the Persada Johor International Convention Centre here yesterday.
Source: NST
"The prime minister has directed the relevant ministry to look into increasing the fleet card quota for transport companies," he said.
Currently, only 30 per cent of vehicles owned by transport companies are entitled to the fuel subsidy, prompting them to raise fares.
Nor Mohamed said the government would continue to give priority to improving the transport sector despite the financial burden of the fuel price increase.
He said besides improving public transport in urban areas such as the Klang Valley, Penang and Johor Baru, the government will also strive to build more roads in rural areas.
To another question, he said the National Heritage Fund now stood at RM5 billion with Petronas contributing RM100 million every year to the fund.
He said the fund was necessary for the benefit of the future generations. Revenue generated by Petronas was invested in activities that would bring long-term benefit to the country and its people.
In Johor Baru, Deputy Entrepreneur and Cooperative Development Minister Datuk Saifuddin Abdullah said the ministry was finalising a comprehensive study on bus fares. The study would be finalised within a month.
"The government understands the situation and is aware of the difficulties faced by bus operators. The ministry is working on a comprehensive study on how to tackle the issue."
The last fare increase for bus operators was in 2005.
"The government, however, feels that we should safeguard the interests of the general consumers before deciding on the right fare hike."
Saifuddin said the hike in fuel prices was not the only issue faced by bus operators.
Fuel makes up between 28 and 32 per cent of the operation cost of bus operators.
Saifuddin said operators of express, stage and school buses were involved in the study.
He said this after presenting certificates to 650 students who had completed vocational training at Johor Skills Development Centre (Puspatri) at the Persada Johor International Convention Centre here yesterday.
Source: NST
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