Targeted diesel subsidy doesn’t affect Perodua – CEO

Targeted diesel subsidy doesn’t affect Perodua – CEO

Yesterday, the government kicked off its fuel subsidy rationalisation programme by proclaiming that diesel prices in Peninsular Malaysia will be floated, and will retail at RM3.35 per litre starting from today, June 10.

This means that the price of Euro 5 B10 and B20 diesel in Pen Malaysia is now RM1.20 (or 56%) more than the previous capped price of RM2.15, which has been in place since February 2021. While not mentioned in the press statement, the price of Euro 5 B7 – which before this costs 20 sen per litre more – should be adjusted to RM3.55 per litre.

Subsidy is maintained for certain sectors. Subsidised Diesel Control System (SKDS) 2.0 provides fleet cards to eligible logistics vehicles to mitigate the impact of the diesel price on consumer goods prices and is set at RM2.15 per litre. SKDS 1.0 is for land public transport, including school buses, express buses, ambulances and fire engines – the price is RM1.88 per litre. Subsidised diesel for fishermen is maintained at RM1.65 per litre.

Targeted diesel subsidy doesn’t affect Perodua – CEO

As such, in theory, the feared increase in consumer goods prices should not materialise, as commercial vehicles under the logistics sector continue to pay RM2.15 per litre for diesel. When asked about the impact of targeted diesel subsidy on Perodua, president and CEO Datuk Seri Zainal Abidin Ahmad affirmed that there will be no increase in cost for the carmaker.

“No, not much, because as mentioned by the minister, for large companies, mostly our carriers use diesel and they still enjoy (the subsidy, via fleet card), so we’ll not be affected. If any also, it’ll be very small and we will not pass (it down) to the customer, definitely,” he said at today’s MoU signing between Perodua and Malaysia Rail Link for Perodua to use the East Coast Rail Link (ECRL) for freight transportation services.

So, we cannot be sure if the prices of beef, bayam and roti canai will be maintained, but what’s confirmed is that Perodua – which sells four of every 10 cars in Malaysia – will not increase prices.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Dah Menang Semua on Jun 10, 2024 at 6:29 pm

    My mother is a woman

    Like or Dislike: Thumb up 14 Thumb down 1
  • that’s fast respond, meaning no price increase due to Diesel Naik Harga.

    many company still waiting to see it’s impact by monthly bill and claim.

    Like or Dislike: Thumb up 6 Thumb down 1
    • I Miss BN 60 Years Rule on Jun 11, 2024 at 6:16 pm

      Does not affect? What Bullshit statement!
      Does the trucks delivering car parts no need to use diesel? Does the trucks delivering cars out from his factory no need use diesel? Did he tell his vendors & suppliers do not use diesel vehicles?

      Like or Dislike: Thumb up 2 Thumb down 1
  • Ahcong on Jun 10, 2024 at 7:06 pm

    Hello, of course not affect lah, you sell Diesel pick up and lorry meh?

    Like or Dislike: Thumb up 3 Thumb down 7
    • Ahcong lover on Jun 11, 2024 at 8:20 am

      Perodua delivers their cars using lorry meh, or you expect customers to self pick up their cars just like you pickup tomyam noodle

      Like or Dislike: Thumb up 4 Thumb down 1
    • Ahcong lover on Jun 11, 2024 at 8:22 am

      Perodua delivers their cars using lorry meh, or you expect customers to self pick up their cars just like you pick up tomyam noodle at mamak stall

      Like or Dislike: Thumb up 3 Thumb down 1
    • Squid on Jun 11, 2024 at 8:37 am

      U think they use Axia to deliver the parts to the factory and cars to showrooms?

      Like or Dislike: Thumb up 3 Thumb down 0
  • aljubok menang toll dihapuskan on Jun 10, 2024 at 10:29 pm

    This is why, i keep saying the rich do not know who the B40 live. This includes all the company directors, CEOs, managers..stupid arseholes
    Does the CEO know that all the spare parts and fluids used in perodua cars are delivered by diesel vehicles to the service centres?
    All perodua owners, please print this article and keep it in your cars… If perodua increases the prices of parts,,, show them this article and complain to KPDN!!!!

    Like or Dislike: Thumb up 8 Thumb down 4
  • Doesn’t affect Perodua? Of course. Did you cheat your way out?

    Like or Dislike: Thumb up 3 Thumb down 0
  • TinKosong on Jun 11, 2024 at 9:41 am

    We all know that, your logistic running on electric.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Susukotak on Jun 11, 2024 at 10:05 am

    Tunggu jer nanti

    Like or Dislike: Thumb up 0 Thumb down 0
  • sigaraga on Jun 11, 2024 at 10:46 am

    spare part price increase a lot recently.. iridium s/plug rm260 from rm220

    Like or Dislike: Thumb up 1 Thumb down 0
  • Ben Yap on Jun 11, 2024 at 10:48 am

    later down the road, when Perodua want to increase price, then they will state inflation due to the increase in diesel which their supplier transferred the cost to them.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Jack Voo on Jun 11, 2024 at 11:17 am

    At least for the Perodua, from the statement, “large companies ….still enjoy (the subsidy, via fleet card), so we’ll not be affected”

    Others not sure la

    Like or Dislike: Thumb up 0 Thumb down 0
  • Neutral on Jun 11, 2024 at 12:13 pm

    So sad that many people doesn’t read or go into the effort to understand mechanism. If you run a logistic company, a legal one.. you still get the subsidized fuel. So, there will be no increase in price. If those logistic company increases their price.. Don’t think you are clever by imposing higher price because of unsubsidized diesel. buyer will goes to a legit company which retains lower price due his his entitlement of subsidized diesel (on his company).

    Like or Dislike: Thumb up 1 Thumb down 3
  • Ex VGM staff on Jun 11, 2024 at 1:34 pm

    Honda : laughs at Toyota

    Like or Dislike: Thumb up 0 Thumb down 0
  • CAMPRO Engine got affected or Not? on Jun 11, 2024 at 5:52 pm

    IF RON95 subsidi tarik balik

    CAMPRO Engine users mati katak?

    Like or Dislike: Thumb up 0 Thumb down 3
  • Peppa on Jun 11, 2024 at 9:27 pm

    Of course it doesn’t since you have no diesel offering. What a stupid ceo

    Like or Dislike: Thumb up 1 Thumb down 0
 

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