Subsidy-Tourism Persists With The Exemption For Singaporeans

What happened? Why are Singaporean vehicles now exempted from all parts of the ruling and allowed to pump any amounts of fuel they want? Apparently, the ruling that took more than one year to conceive has been altered twice in two days, and serves only half its intended purpose.

It all started on December 9, when Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob announced that foreign cars will not be allowed to pump more than 20 litres of fuel at any petrol stations located within 50km from the border. Checkpoint authorities will be directed to ensure no foreign vehicles leave the country with more than 20 litres of fuel in their tanks.

Despite the outcry from foreigners and confusion about the enforcement and penalties, the government stood firm—up till December 16, the day that the ruling takes effect. Realising that Singapore already has a ruling in place requiring all out-going Singaporean vehicles to fill up at least three quarters of their tanks, the government scrapped the part of the new ruling that requires Singaporean vehicles to be checked at the customs for fuel levels. Fair enough, we thought.

But merely a day later, on December 17, the government decided to basically exempt Singaporean vehicles from the ruling, in effect allowing them to pump more than 20 litres of fuel within 50km from the border. The ruling now only applies to Thai vehicles, which are restricted to less than 20 litres of fuel purchase within 50km from the border, and are subjected to checks when crossing the border.

The fact is that there is no good reason to exempt Singaporean vehicles. Yes, they need not be checked when they go back, but the ruling making it illegal for them to purchase beyond 20 litres of fuel should be in place. Enforcement may be an issue, but the penalties alone could act as a deterrent against the rampant practice of subsidy-tourism.

Bad policy-making aside, the ruling only manages to stop the leaks near the Thai border, while Singaporean vehicles continue to enjoy subsidised fuel prices until May of next year.