26/10/2007 (The Star Online) - LAWS to encourage the setting up of bio-diesel and bio-fuel pumps at petrol stations have to be made as oil prices are spiralling.

Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said the Government wanted to see wider use of alternative fuels among the people.

“Studies will be made to find out the long-term benefits and economic consequences when alternative fuels are widely used in the country in the future,” he told reporters at Parliament lobby.

He said Malaysians should brace for an increase in fuel prices due to rising crude oil prices.

In the Dewan, Shafie told Datuk Badruddin Amiruldin (BN-Jerai) that Malaysia’s oil and gas reserves would only last up to 10 years and crude oil would have to be imported after that.

He said the Government would accelerate the move to use alternative fuels or nuclear power and give priority to the use of palm oil fuels and encourage alternative renewable energy. Shafie said the retail price of diesel fuel was lower than other countries although the Government raised the price by 30 sen in February last year.

He said although Malaysians should have paid more than RM2 for unsubsidised diesel per litre, they are paying RM1.581.

He said in comparison, the price of diesel per litre in the US was RM2.64, United Kingdom (RM6.81), Portugal (RM5.22), France (RM4.89), Spain (RM4.65), Singapore (RM2.82), Indonesia (RM2.33) and Thailand (RM2.59).

“The Government paid RM3.818bil in subsidies to industries in 2006, in which the fisheries sector received 1.164 million litres of diesel, while the transportation sector including passenger boat operators, received 5,467 million litres,” he told Datuk Seri Syed Razlan Syed Putra Jamalullail (BN-Arau).