Special meeting on diesel quotas as crisis worsens
PUTRAJAYA: The Government will call a special meeting this week to discuss the quota of diesel to petrol stations in the country and on new measures to curb fuel smuggling.
Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said the meeting would be chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak, and would involve relevant agencies such as the finance and agriculture ministries.
“Smuggling of diesel to drivers outside the country is very serious and will continue because the price of fuel in their countries is almost double ours.
“As it is, the ministry found that between 2002 and 2005, demand for diesel from our industries has gone down from 7 billion litres to 4 billion litres. At the same time, demand for diesel from our petrol stations has gone up from 2.1 billion litres to 5.5 billion litres.
“We need to hold this meeting as soon as possible, within this week,” he said here yesterday.
Shafie said the current volume of demand did not make sense, as only 15% of the 400,000 vehicles in the country and some 80,000 fishermen were eligible for subsidies.
The ministry, he said, had discovered that some petrol stations even had contracts with certain customers for the sale of diesel.
“This means no matter how much diesel we give out, it’ll be gone by the end of the day, and affect the operations of those on subsidies,” he added.
Both consumers and public transport operators had been complaining following the diesel shortage in certain parts of the country.
Recently, Najib said both the domestic trade and consumer affairs and the finance ministries had been directed to look into a new price structure for petroleum products, particularly diesel, to prevent the sale of heavily subsidised fuel to non-deserving parties.
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