The Petrol Dealers Association of Malaysia (PDAM) has urged the government to delay introducing the RON 95 petrol subsidy rationalisation plan until critical industry issues are resolved, reports FMT.
PDAM president Khairul Annuar Abdul Aziz said dealer margins, which are fixed under the automatic pricing mechanism (APM), had not been revised since 2019 and no longer reflected current operating costs. Additionally, he voiced concern over the merchant discount rate (MDR) imposed on card payments, which increases as fuel prices rise but leaves dealers’ per-litre commissions untouched.
“Without a margin revision, small and medium-volume station operators will face losses from the very first day of the RON 95 subsidy rationalisation implementation. And as pump prices increase under the rationalisation, the MDR rises accordingly, but dealer commissions remain static, resulting in a further erosion of margins,” he said in a statement. PDAM represents over 4,000 petrol stations nationwide and had previously voiced similar concerns last year (Facebook post attached below).
The RON 95 petrol subsidy rationalisation plan is set to be implemented in the second half of 2025, as revealed by second finance minister Datuk Seri Amir Hamzah Azizan a few days ago. A few days before that, former economic minister Rafizi Ramli said the plan had been fully handed over to the finance ministry.
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PDAM really all money money money one sided.
Basically just about every stakeholders; the PDAM, the rakyat, the petrol distros, the Opposition MPS, all are against raising RON95. All disagree except for PMX and PH mentris. This Gomen is tone deaf to rakyat suffering just to fill their pockets and ears with enough cash to block out our cries. This is PH Gomen.
Start the mechanism first
Since petrol price is low
Why all parties need delay of RON95 subsidy rationalisation? Do you know that gov subsidized RM 20b a year for RON95 to keep at RM 2.05 and we ranked no. 9 in the world with cheapest fuel. Ironically is we only rank no. 24 in the world of oil production. Saudi Arabic rank no. 2 in oil production and yet their RON 95 is RM 2.64 (Riyal 2.33) which is higher price than Malaysia. Saudi has 15% VAT (aka GST) unless Malaysia we only has SST which is not huge income to gov compare to GST.
Gov should think of reduce subsidy of half to everyone and for T20 no subsidy at all. Without subsidy Ron95 should be around RM3.00 while reduce by half will be RM2.50. If monthly use 250 litres x RM 0.45, monthly extra RM 112.50 for B40 and M40. This isn’t a sky rocket high number. I believe at least 70% of cars use less than 250 litres a month.
Gov can consider to continue subsidy to taxi, ehailing, some other groups of people. But for majority we should not enjoy heavy subsidy of fuel. If not why people bother to take public transport.
Sir,Saudi oil is expensive cos they spend Billions of USD to buy US arms,after the Saddam invasion of Kuwait.
They dont want another Iraqi or Iranian invasion.
Different geo politics over there.
Saudi average salary how much vs Malaysia? if malaysian average salary is as much as Saudi, there is no problem to remove subsidy. Malaysians a lot of poor people that rely on T20 to pay the taxes. it is lopsided and that’s why T20 isn’t happy. Meanwhile Saudi has no individual income tax. So if want to compare apple to apple, Malaysia should remove individual income tax, raise Malaysian average salary to be at par with Saudi then finally remove all fuel subisidy.
Firstly, is it a crime to be in T20? They worked hard for the nation and paid through their taxes. While people like you blaming those who worked hard. I think government should take away subsidy and make everyone work hard to increase the annual household income. All this subsidy making you jealousy-incompetent human that only parasite surrounding people.
We are all citizens of this country and we all shed our blood and sweat for the country. This is hasil bumi tanahair so we all deserve equal rights. Everyone who pays tax should get 100 or 200 liters per month at the same price. More than that, then you pay full price.
Generally, it will benefit 99% of the M40 and B40, while not leaving out the T20 who pays taxes for everyone else. The 1% of M40 and B40 who drives old guzzlers 2.0cc or 3.0cc, just need to control consumption to below 200 litres.
delay and delay and by the time want to implement, it is already nearing next GE. so it will be abolished there after.
PDAM have a point,PMX.
With the insane Trump tariffs whacking our exporters,thousands of jobs r at stake.If companies n top earners r taxed more thro zero subsidies,it will be a double whammy.
Dont be overly gungho like the Rafizi dude,who received massive backlash.
Settle the PDAM genuine issues first,then naik harga.
If not 40% of the petrol dealers can bungkus in weeks.
Boleh sila pdam subsidise la
Yes, you should delay your breakfast and lunch also dinner to supper because finally you only have to eat.
hardly critical issues