Public transport companies have been warned by the government against increasing fares unnecessarily.

Entrepreneur and Cooperative Development Minister Noh Omar said that plans are afoot to help increase the fuel subsidy enjoyed by these operators from the existing 30 percent to 100 percent.

Therefore, Noh said there was no reason why any costs should be passed on to consumers.

“I read in the papers that the school bus operators want to raise their fares. I want to stress here that they cannot charge more than what has already been set,” he said at the sidelines of Umno’s two-day retreat in Shah Alam.

“We’ve already held a meeting at the ministry with these operators and we told them that we are ready to assist them,” said Noh Omar.

He added that public transportation companies which use petrol instead of diesel can now apply for the fleet card - a discount card provided by the government.

Previously only those companies which use diesel are eligible for the fleet cards, where they get a 30-percent discount at the pumps.

“But we realise that there are taxis, buses and lorries which use petrol hence we have decided to consider their applications too.”

Noh said the companies should apply for the cards from the Ministry of Domestic Trade and Consumer Affairs.

On top of this, his ministry will also raise the matter with the Finance Ministry and ask them to increase the budget for subsidies to public transportation companies.

“We are considering giving them 100 percent so that no increase in costs would be passed on to consumers,” said Noh Omar.

New price levels

Meanwhile, Domestic Trade and Consumer Affairs Minister Shahrir Samad said that the government will use the monthly average price of oil to determine the new price every month.

This, he said, means that the price could be higher or lower depending on the global price of oil.

After deducting the 30-sen subsidy the government gives, the new price will be announced accordingly, he added.

“Since it is not the intention of the government to completely do away with the fuel subsidy (30 sen), barring any huge fluctuations, price of petrol should hover around RM2.70,” said Shahrir.

On the lifting of the ban of sale of fuel to Thai-registered cars, the domestic trade minister said that “it is no longer appropriate after we have cut subsidies and reduced fuel prices”.

“But there is an understanding with the Thai authorities that their cars would be limited to 20 litres of diesel only,” said Shahrir.

“Although this is a restriction, it is not a complete ban,” he added.