![[UPDATED] Govt urged to defer RON95 subsidy rationalisation implementation](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2FHQ300624AZ010_%25282%2529_1748920316.jpg&w=3840&q=100)
[UPDATED] Govt urged to defer RON95 subsidy rationalisation implementation
KUALA LUMPUR: The Petroleum Dealers Association of Malaysia (PDAM) has urged the government to postpone the implementation of the RON95 subsidy rationalisation until two critical issues that directly affect the sustainability of the industry are resolved.
Representing operators of 4,000 petrol stations nationwide, the association warned that these unresolved concerns could threaten the viability of petrol station operators, particularly those running small and medium-volume outlets.
Its president, Datuk Khairul Annuar Abdul Aziz, said one of the issues involves the Automatic Pricing Mechanism (APM), which no longer reflects current operating costs, having remained unchanged since 2019.
"Without a margin revision, small and medium-volume station operators will face losses from the very first day of the RON95 subsidy rationalisation implementation," he said in a statement.
The second issue, Khairul Annuar said, relates to the Merchant Discount Rate (MDR).
"MDR charges are calculated as a percentage of the sale price, while dealers' commissions are based on litres sold.
"As pump prices increase under the RON95 subsidy rationalisation, MDR rises accordingly, but dealer commissions remain static, resulting in further erosion of margins."
Second Finance Minister Datuk Seri Amir Hamzah Azizan had recently announced that the rationalisation of RON95 fuel subsidies would be implemented in the second half of this year.
He had also said the Finance Ministry would continue with the subsidy rationalisation process, with the current focus on identifying the groups eligible to receive the subsidies.
On another matter, Khairul Annuar also criticised a group claiming to represent Bumiputera fuel retailers, which alleged that no consultation had taken place with dealers regarding the rationalisation plan.
"The claim that there has been no consultation with station operators is inaccurate and misleading to the public.
"As the only association that has represented the industry for over 40 years, we remain guided by the principles of collaboration and transparency.
"PDAM is open to working with any party that genuinely seeks to advance the interests of the industry based on facts and responsible engagement, without misrepresenting public perception or politicising sensitive issues."
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