The price of kerosene without subsidy is RM1.95 per litre.
“The government understands that the need for kerosene among folks in the rural areas is very high and we do not want them to be burdened with a high kerosene price,” he said.
A total of RM3 million has been allocated for the subsidy with RM1.3 million for Sabah and RM1.7 million for Sarawak, he told reporters after announcing the new price during the launch of a Shell petrol station in Telipok here.
Among the areas to enjoy the subsidy will be Telipok, Tuaran, Tamparuli, Kundasang, Ranau, Sipitang, Beaufort, Tenom, Keningau, Kudat, Kota Belud, Kota Marudu, Sandakan and Tawau.
The quota will be based on the petrol stations in the areas. Telipok, Beaufort and Kudat will have the highest quota with each supplied 10,000 litres per month and the others 5,000 litres a month.
A total of 21 petrol stations in Sabah will be selling the subsidised kerosene with 19 being Shell stations and two Petronas stations.
On the RON 95 petrol which will replace the RON 92 beginning September 1, Ismail gave the assurance that the selling price will not exceed RM1.80 per litre.
The RON 97 petrol will meanwhile become a premium product effective September 1 and the retail price of both RON 97 and RON 95 will be announced before the date.
In his speech earlier, Ismail also said that Malaysia will not be facing a problem from the sugar shortage in the world as reported.
“Sugar importing companies already have long-term agreement with the sugar producers and the price has been also fixed as the government subsidises it,” he said.