Delay RON95 subsidy rationalisation until two issues ironed out, petrol dealers urge govt

The Star

2 days ago

PETALING JAYA: Delay the implementation of the RON95 targeted petrol subsidies until two core issues affecting petrol dealers are resolved, says the Petroleum Dealers Association of Malaysia (PDAM).
Its president Datuk Khairul Annuar Abdul Aziz said that it was crucial that the issues be addressed as the rollout of the RON95 rationalisation plan would impact petrol dealers, particularly the small and medium operators.
The two issues, he said, were the margins related to the Automatic Pricing Mechanism (APM) and Merchant Discount Rate (MDR).
"The fixed dealer margin, unchanged since 2019, no longer reflects current operating costs.
"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 on Tuesday (June 3).
He added that the MDR charges are calculated as a percentage of the sale price, while dealers' commissions are based on litres sold.
"As pump prices increase under RON95 subsidy rationalisation, MDR rises accordingly, but dealer commissions remain static, resulting in further erosion of margins," he said.
Khairul noted that despite multiple requests over the past two years by PDAM for a meeting with Prime Minister Datuk Seri Anwar Ibrahim, no meeting had been forthcoming.
"We believe that only through direct leadership from the Prime Minister, can a sustainable and balanced resolution be achieved.
"One that ensures the continuity of local dealer operations and the security of fuel supply to the public," he said.
He added that a nationwide petition initiated by PDAM to seek help in resolving the two issues had garnered over 2,300 verified signatures, representing more than 60% of petrol stations nationwide which includes 70% of major branded stations such as Petronas, Shell, Petron, Caltex and BHPetrol.
PDAM represents some 4,000 petrol stations nationwide and is the umbrella association representing eight petrol dealers associations in the country.