In recent articles the Malaysian press has echoed the unhappiness of license holders of so called “C2 trawlers” about the removal of a super-subsidy given by the government.
These trawlers are offshore vessels of 70 GRT and above and operate beyond 30 nautical miles off the coast. Until 31 May 2011 these trawlers could buy diesel at the price Malaysian Ringgit or RM 1.25 (or 0.41USD). After that date they price they pay is RM 1.80 (or 0.59 USD).
According to the government, this is still a subsidised price.
As to how this super-subsidy worked one of the articles (1) mentions that:
“The government subsidises 25,000 to 28,000 litres of diesel equivalent to RM31,250 (10,271 USD) and RM35,000 (11,503 USD) for each vessel every month and all Zone C2 vessels could use up to an average of 14 million litres of diesel every month”
Here are links to press articles on this issue: