GOVT TO SUBSIDISE OIL TRANSPORT TO RURAL AREAS

PUTRAJAYA, Feb 21 (Bernama) -- The government will subsidise the cost of oil transportation to rural and remote areas such as in East Malaysia states of Sabah and Sarawak, Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad said.

He said the approach was among the measures introduced in the second
economic stimulus package to be tabled by Deputy Prime Minister Najib Razak in
the Lower House of Parliament on March 10.

"It is because there are problems in terms of the cost of transporting
petrol and diesel; there is a price difference between rural and remote areas
and in towns.

"We see that the wholesale system in the country is not very effective and
can be improved and in remote areas, it may require the government to pay the
transportation cost," he told reporters here Friday.

He said an essential item distribution programme would also be implemented
in rural and remote areas to ensure the people there receive such goods at the
same price as that in towns.

Shahrir said when the government was able to reduce the price of essential
items in rural and remote areas, the people would have more money for other
expenses.

"So the essential item distribution programme in rural and remote areas will
be implemented this year nationwide and it will be announced in the mini
budget," he said.

He said the buy Malaysian goods campaign was also among the measures to
encourage local spending.

Meanwhile, he said the government expected the Consumer Price Index to come
down further in the first quarter of the year.

"We anticipate that it will moderate even more because we expect the price
of goods to come down in the first quarter of this year.

"For example, the price of Dutch Lady items has been reduced and there will
be other price reductions by the manufacturing sector within this first quarter.
So we anticipate a reduction in the price of typical manufactured products,"
he said.
-- BERNAMA