New Fuel Directive

It has been reported that from 19th June 2008, the price of petrol being sold for foreign-registered cars would be different to that sold to Bruneian cars. For foreign-registered cards, the price of a litre of Premium 97 would be B$1.18 (BND0.53 for locally-registered cars) and B$1.13 for a litre of diesel (B$0.31 for locally-registered cars). This move was made to ease the Government's burden on fuel subsidy which reached the record B$202 million mark last year. The prices for Premium 97 and diesel for foreign-registered are said to be 'the commercial rates', i.e. their price if subsidy was not paid for by the government. Purchase of petrol can only be made from some appointed filling stations.

Almost two weeks ago, Malaysia reduced the fuel subsidy, thus increasing the price of petrol. As a result of this, the foreign outflow from fuel sales has steeply increased. Diesel sales to foreign-registered cars increased by as much as 66%, while that for Premium 97 increased by 36%.

Apart from the increase in the purchase of subsidised fuel to foreign cars, an increase in the attempt to smuggle of fuel was also observed.

Lately, most vehicles used for smuggling fuel across the borders are Brunei-registered vehicles. Hopefully the relevant authorities are taking appropriate actions to reduce the smuggling attempt by these Brunei-registered vehicles, as they are not subjected to these fuel purchase restrictions.