PM: Fuel ban on foreigners is to protect locals

The government just wants to make sure that locals, and not foreigners from neighbouring countries, are the ones who fully enjoy the fuel subsidy.

That is the rationale behind the decision by the government to impose a ban on fuel sale for foreigners in border states, which will take effect from Friday, Prime Minister Abdullah Ahmad Badawi said today.

"We don't like smuggling whereby people are selling our oil outside the country because it is cheap.

"It should be used by locals and not for some people to make a profit from," he told reporters in Parliament lobby today.

"We don't have that much oil either and yet people want to sell it. That's not right and it must be controlled from happening," he added.

He said that the cabinet was firm in its decision on the matter.

The government announced on Monday that it was going to restrict fuel sales to foreign motorists on its borders in an attempt to curb the spiralling cost of government subsidies.

Hundreds of Thai and Singaporean motorists cross the border every day to fill up on cheap petrol and diesel.

"Taxpayers' money is being used to subsidise petrol for those who are not entitled to receive the subsidy," Deputy Prime Minister Najib Abdul Razak had said.

"[Foreigners] should not take advantage of our subsidy scheme," he added.

Subsidies are expected to cost the government about RM50 billion this year as oil prices rise worldwide.

Oil royalties and election reforms

At the press conference today, Abdullah was also asked on several other issues, as listed below:

On Terengganu Menteri Besar Ahmad Said's demand for oil royalties to be returned to the state.

We haven't made a decision on that yet.

On the on-going spat between Tajuddin Abdul Rahman (BN-Pasir Salak) and de facto law minister Zaid Ibrahim where the former called for the PM to review the latter's appointment to the cabinet.

There are some who criticise the party's policies and action will normally be taken against those who make untrue or false claims. But if it is about how we can do things better, then nothing will happen.

They (Tajuddin and Zaid) will be friends again after this.

On Election Commission chairperson Abdul Rashid Abdul Rahman's call for electoral law reforms .

We have not discussed this. Those are the views of the EC chairperson who wants to re-register everybody onto a new electoral roll that would take two years.

At this point in time, there is no response from the government on this.