Transport minister Loke Siew Fook said the diesel subsidy would be provided on strategic routes in Penang, Labuan, Langkawi, Pangkor, Tioman, Redang, and Pulau Ketam.

“The capped price for subsidised diesel for passenger ferries/boats and RORO ferry services on these main islands is RM2.50 per litre, with a maximum subsidy rate of 50 sen per litre,” he said during a press conference at his ministry here.

Loke said operators could start submitting their claims on or before Feb 20.

This subsidy is expected to have a positive impact on ferry and boat operators, as well as RORO ferry services, by reducing operational costs, particularly those related to fuel,” he said.

“While the diesel subsidy is intended to ease ferry operators’ operational costs, operators have to ensure the quality of their service and safety standards are improved.

“(They also have) to provide more efficient and competitive services to users.”

Loke said ferry and passenger boat operators, as well as RORO ferry operators, must be registered with the marine department and obtain diesel supplies from a company or skid tank certified by the authorities to be eligible for the subsidies.

They must also submit a diesel purchase quota application to the domestic trade and cost of living ministry to obtain the subsidies.

Loke said operators’ diesel subsidy claims must be submitted monthly based on the rates set by the finance ministry each month.