Fuel station operators push for delay in subsidy control mechanism
THE government should postpone the implementation of the Petrol Subsidy Control System (SKPS) until two critical issues related to it are resolved.
The President of the Petrol Dealers Association of Malaysia (PDAM), Datuk Khairul Annuar Abdul Aziz, said the two issues concern margins under the automatic pricing mechanism (APM) and the merchant discount rate (MDR) charged by payment card companies.
He said the APM margin, unchanged since 2019, no longer reflects current costs, causing small and medium-sized operators to suffer losses from day one of the SKPS rollout.
'In addition, the government needs to look into the MDR issue, which is based on sales value, while dealers' commission is based on litres sold.
'Increases in pump prices will raise the MDR, but they do not increase commissions, which ends up eroding dealer margins,' he said in a statement yesterday.
Previously, Prime Minister Datuk Seri Anwar Ibrahim, when presenting Budget 2025, gave an assurance that the introduction of targeted RON95 subsidies would not impact 85% of Malaysians.
In response, Khairul Annuar expressed hope that the association would be able to meet with Anwar, following two years of unsuccessful attempts to do so.
'We believe that only through the direct leadership of the Prime Minister can a concrete solution be reached to ensure the sustainability of local fuel dealers and guarantee fuel supply for the public,' he said.
According to Khairul Annuar, PDAM represents the voices of more than 60% of petrol stations nationwide.
'PDAM is always ready to cooperate with any party in advocating for the interests of this industry in a comprehensive and fact-based manner,' he said. — TMR
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