PUTRAJAYA, Dec 20 — The government has agreed to provide diesel subsidies for eligible ferry and passenger vessel operators, Transport Minister Anthony Loke announced today.
The decision came after ferry operators in Langkawi said it would raise fares to offset rising diesel prices. Vessels carrying tourists were not subsidised previously.
Loke said that extending diesel subsidies to include ferries and tourism vessels is expected to help operators maintain current fares without raising prices.
“And the ministry would like to remind operators that even if the diesel subsidies are meant to help them cope with rising costs, we will monitor so that they’d provide efficient and satisfactory services,” the minister stressed.
In Langkawi’s case, Loke said representatives from MoT had initiated talks with operators, who have since agreed to keep fares at the same rate.
“Previously I publicly advised the Langkawi ferry operators and the ministry had contacted them and that same day they announced they wouldn’t raise fares for local passengers,” he said.
The minister also warned that he would act against any operators found raising fares, including revoking their operating licence.
“I’m warning anyone if they raise fares without first talking to MoT they will either be excluded from getting subsidies or have their application rejected,” he said.
“We will continue to monitor and passengers can file a complaint with us, and if any of the operators receiving subsidies still raise their fares we will cut the subsidies and not just that, we will revoke their licences.”
