Cleaner fuels to be available nationwide

By THE STAR | 12 January 2015

CYBERJAYA: The Government will expand the availability of cleaner fuels mainly in major cities at selected petrol stations across the country.

Such fuels would meet the Euro 4 petrol and Euro 5 diesel fuel standard.

“BHP and Petronas have started in Johor... we will work with them to roll out this programme to Selangor, Penang, Kuantan, etc. To have a complete supply of clean diesel in the north, south, east and west would make sense,” said  Malaysian Automotive Institute (MAI) chief executive officer M. Madani Sahari.

Madani further said that prices charged to the consumer should be reduced, given that car manufacturers would pay a lower tax of 6% to the Government instead of 10% at present after the introduction of the goods and services tax (GST).

“Whether this reduction materialises depends on whether the OEM and the retail manufacturers decide to reduce car prices. In our opinion, the lower effective tax paid should benefit the consumer, and therefore, we think they should reduce car prices,” he said.

Indirectly, Madani said the GST would be good for the automotive industry, as consumers would only pay 6% GST as opposed to a 10% sales tax rate before, while automotive supply chain players would get a higher cash balance from the lower effective tax rate. -- DANIEL KHOO