The government has abolished the diesel  super subsidy enjoyed by commercial lorries effective yesterday as it feels that only private vehicles and public interest vehicles should be accorded the subsidy.

Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob said this meant that commercial lorries should pay RM1.80 per liter of diesel compared with RM1.48 paid when they were enjoying the diesel super subsidy.  

"The super subsidy is maintained for public interest vehicles such as school buses, taxis, individuals who own outboard boat engines and so on," he told a media conference after presenting Excellent Service Awards to employees of the Intellectual Property Corporation of Malaysia, here today.

He said the decision did not mean that the government was withdrawing the diesel subsidy because commercial lorry operators could purchase the fuel at the subsidised price of RM1.80 per liter.

He said the diesel price of RM1.80 sold at the petrol kiosks still enjoyed a government subsidy of RM1 per liter because otherwise the price would actually be RM2.80 per liter without the subsidy.    

Gov't to monitor fee increase

"We must understand this. Don't say that we have withdrawn all subsidy to the lorry operators. This is not so. They are still enjoying the subsidy of RM1 per liter.

"It's just that previously we gave subsidy on top of another subsidy where we gave a subsidy of RM1 and subsequently we gave another super subsidy to the extent that they only had to pay RM1.48 per liter," he said.

Asked about the intention of the commercial lorry operators to raise their service cost which would increase the prices of goods, Ismail Sabri said the government could not prevent them from making such a decision.

He said the government would monitor the matter and see the impact of the increase in transport cost on the prices of goods.

Meanwhile, Ismail Sabri said his ministry had not received any report on price increases following the rise in electricity tariff which took effect yesterday.

- Bernama