Photo: AZHAR MAHFOF
PETALING JAYA: As the RON95 petrol subsidy rationalisation is expected to take place this year, eligible motorists have voiced their preference for lower fuel prices at the pump instead of receiving aid in the form of a flat sum in their bank accounts.
Mac Wong, a 54-year-old small-time businessman who deals in IT products, said it would be more practical for motorists to receive the subsidy when they buy RON95 petrol.
Paying out a flat sum, he said, may lead to abuse as some unscrupulous parties could register old and inoperable cars under their names and family members for the aid.
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“It is best to get subsidised petrol when we buy it and not wait for the aid to be credited into our bank accounts. There is greater transparency by doing so,” he said.
Wong also hopes the government will shed light on the mechanism of how the petrol subsidy will be disbursed to eligible motorists.
Executive R. Nandan, who travels between Johor Baru and the Klang Valley every week, said although the government has assured 90% of motorists would not be impacted by the subsidy removal, it is still unfair to top earners.
“Just because they earn more does not mean they should be paying more. Those from the T20 bracket may have their own commitments based on their income and may not be ‘floating on money’,” said the 53-year-old.
“As much as I feel it is justified to do away with subsidies to beef up the public coffers, it should be imposed on the right parties.”
Nandan, who agreed that subsidies should be given at the point of purchase, suggests that the government implement a tiered sale of RON95 where a particular amount of petrol, perhaps of 200 litres, is fully subsidised, the next tier is partially subsidised and subsequent tiers are unsubsidised.
He said the government should also have initiatives to encourage the use of electric cars and improve public transportation which the public could opt for to overcome the higher costs that may result from the subsidy removal.
“There should be greater enforcement on foreigners who are enjoying our subsidised petrol without facing any stern action. These measures will need to be seriously carried out before the subsidy removal plan is implemented,” said Nandan.
“This whole rationalisation plan remains unclear and kept the public in the dark. Our concern is if it may lead to glitches when it comes into force and leave the masses in a quandary when they are unable to buy subsidised petrol.
“Perhaps, it should be done gradually and in phases, which will benefit both consumer and government in overcoming any issues that may arise.”
Azaharin Abdullah, 45, who runs a food stall, also said the subsidy should be given at the point of purchase due to potential technical glitches, as was the case with the RM200 subsidy paid out for diesel.
Several other motorists, who were interviewed and shared similar sentiments, also raised concerns over the rising costs from the removal of the subsidy.
“Even if we are assured that 90% of motorists will not be affected, there is no doubt fuel price fluctuations will often impact the prices of goods and food.
“This ripple effect will always put a dent in the finances of the common man,” said one motorist.
Meanwhile, the Petroleum Dealers Association of Malaysia (PDAM) urged the government to consider postponing the rollout until the mechanism is thoroughly tested and proven stable.
PDAM president Datuk Khairul Annuar Abdul Aziz revealed that the association has yet to receive confirmation from the government on the full implementation mechanism for the RON95 targeted subsidy.
“We understand that pilot tests are being conducted by several fuel brands. This is a highly complex exercise involving various platforms, systems and technologies across different companies.
“We were also informed that the proposed mechanism will involve the use of MyKad for user verification.
“Given the broader and more politically sensitive scope of RON95 petrol, all stakeholders must be assured of a seamless and reliable delivery system,” he told The Star.
Khairul said some challenges were observed in the implementation of diesel subsidy such as delay in disbursing the aid.
Prime Minister Datuk Seri Anwar Ibrahim had said a two-tier pricing mechanism for the RON95 petrol subsidy is being studied and between 85% and 90% of motorists will be unaffected by the move.
