Wednesday, May 28, 2008

No More Petrol In JB for Singapore cars

Malaysia has declared it will ban the sale of petrol at petrol stations in Johor within 50km of its borders, to Singapore-plated cars with effect from Friday, 30th May, 2008.

Petrol stations there are lamenting that they will lose a lot of business because a huge chunk of their business (as much as 90%) come from foreigners. Many are worried they might have to close down eventually since they would not be able to survive the ban.

I think if the Malaysian government wants to prevent foreign vehicles from benefitting from their heavily-subsidised fuel, which costed the government a whopping RM40b in 2007, they should impose a surcharge on Singapore-plated cars of maybe RM20 to RM50 instead, to alleviate the subsidy expenditure.

I believe with such a surcharge, there will still be Singaporeans who will drive up to JB to top up petrol for their cars, albeit fewer ones.


Blogger JOEPSC said...

To go in solely to fill 1/4 tank is not really worth the while, considering the quality of the petrol, insecurity, the long queue, etc unless one has to go in for other reasons.

Wednesday, May 28, 2008 at 5:25:00 PM GMT+8  
Blogger Mockingbird said...

even though filling 1/4 tank doesn't sound like it's worth the while, but still Singaporeans drive up in droves to top up their petrol almost every day especially the weekends. of coz, they do other things as well besides topping up their petrol.

Wednesday, May 28, 2008 at 5:30:00 PM GMT+8  
Blogger 刘皇帝 said...

It is fine with us. At the end of the day, it is Johor economy that suffers.

And those car thieves who can no longer rob our cars.

Thursday, May 29, 2008 at 7:23:00 PM GMT+8  
Blogger Solid Snake said...

This ban will destroy alot of Petrol station in JB. They are shooting their own foot.

Thursday, May 29, 2008 at 7:49:00 PM GMT+8  
Blogger Mockingbird said...

To Liu Huang Di: Johor economy may suffer with the absence of petrol income contributed by Singaporean drivers, but Malaysia has no choice but to do something drastic to prevent foreigners from benefiting from their substantial fuel subsidy which costed them a whopping RM40b in 2007.

To Solid Snake: The petrol stations will only be able to survive if they charge cars with Singapore plates at an un-subsidised price for the petrol.

Friday, May 30, 2008 at 1:27:00 PM GMT+8  
Blogger Solid Snake said...

Should not waste all the government coffer for petrol. I rather they invest in their infastructure, build school, social programme and others...

The return is higher than just wasting their money on petrol.

Friday, May 30, 2008 at 3:00:00 PM GMT+8  
Blogger Mockingbird said...

To Solid Snake: Yup. They have been delaying the construction of a high-speed rail line to connect the north of West Malaysia to its southern tip which costs much less than the fuel subsidies it has been bearing year after year :p

Friday, June 6, 2008 at 11:05:00 AM GMT+8  

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