13 November 2007

KUALA LUMPUR: Fuel subsidies will have to be looked at differently from now on, by taking the nation�s other needs into consideration, said Domestic and Consumer Affairs Minister Datuk Shafie Apdal.�

With increasing global fuel prices, Shafie conceded there was a need to weigh subsidies against other needs such as medical and education infrastructure and that the Government would figure out a way to balance it.

�The more than RM300mil we spend every month to subsidise fuel could be used for new hospitals, schools, public transportation and better roads.�

�However, there is still a need for such subsidies especially for our fishing and steel sectors,� he told reporters, after presenting recognition awards to 600 consumer outlets that offered reasonable prices for their products.�

Asked whether fuel subsidies would eventually stop, Shafie said it was entirely up to the Government.�

�However, we have to reduce the distribution of the country�s wealth to subsidies. We don�t want a situation where all the country�s revenue is used for subsidies,� he said.�

As for revising the subsidy system, Shafie said the cross-subsidy system was being looked at together by a number of parties including his own ministry, the Economic Planning Unit, Finance and Transport ministries.�

�We have done similar schemes before and they have worked, for both fishing operators and heavy vehicle transport operators.��

He also reiterated that fuel prices would not go further up this year. �