Wednesday, September 3, 2008

Big increase in subsidised diesel for express buses

PUTRAJAYA, Sept 3 — The government has decided to raise the subsidised diesel quota for express buses from 2,500 litres to 9,000 litres per month effective Sept 15.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the decision was made by the Cabinet today to encourage bus operators to increase the number of buses for the Hari Raya holidays.

Shahrir said this when asked to comment on the reluctance of school and factory bus operators to rent out their vehicles for additional bus services during the Hari Raya celebrations.

 

He was speaking to reporters after the launch of Bernama Web TV by Prime Minister Datuk Seri Abdullah Ahmad Badawi at the Prime Minister's Office.

Yesterday, Pan Malaysia Bus Operators Association president Datuk Mohamed Ashfar Ali said the school and factory bus operators were reluctant to rent out their buses as they felt the rates offered by the association were not profitable.

Shahrir said the government's decision meant the cost of subsidy would increase by between RM100 million and RM150 million.

"So the increased quota will make it easier for bus operators to increase the number of buses.

"I think there will be no problems given other benefits like the 30 per cent ticket surcharge and discounted toll. So this will encourage bus operators to increase the number of buses and frequency of service,” he said.  — Bernama

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