PETALING JAYA: The initial implementation of the targeted subsidy mechanism for RON95 petrol at the end of this month is expected to face some hiccups, says the Petroleum Dealers Association of Malaysia (PDAM).
While supporting the move, PDAM described the system as “complex”, with the procedure involving the verification of the identity of customers eligible for the subsidy.
“When the system is launched, there may understandably be some initial challenges.
“PDAM appeals to the public for understanding and cooperation during this transition period,” the association said in a statement yesterday.
PDAM noted that the reduction of the RON95 petrol price to RM1.99 per litre, if implemented on its own for everyone, will be relatively straightforward as fuel prices have been adjusted weekly without difficulty.
“However, the targeted subsidy mechanism for RON95, which involves verification of eligible customers, is a separate and more complex matter.
“Preparations are ongoing and readiness may differ from brand to brand, and even day to day,” the statement added.
The association said its dealers and their staff will do their best to assist in the transition phase.
“We hope there will be hotlines by the government available for public.
“We sincerely hope that the public will work with us constructively and avoid any unruly situations at petrol stations,” said PDAM, adding that it also hopes the issues raised with the Finance Ministry will be fully addressed before the launch.
Meanwhile, petrol station workers nationwide are expected to undergo training soon, with slightly more than a week to go before the implementation of the targeted RON95 subsidy.
A check by The Star at several petrol stations found that workers were told to be on standby for training soon, with some already given a video briefing on the system which involves MyKad readers.
“I was selected from my station to attend a briefing earlier, where we were shown a video on how the petrol subsidy payment system works.
“We were informed that training will be given soon but no date was mentioned,” a petrol station worker said when met here yesterday.
The worker said they were shown a MyKad card reading device which will be used at the payment counter to determine if a customer is eligible for subsidised petrol.
An interesting development is that those who forget to bring their MyKad can still use their Touch ‘n Go e-wallet.
“The e-wallet will contain a special (Budi Madani RON95) icon to deduct the subsidised amount,” the worker said, adding that the new feature will be added after updates are announced by Touch ‘n Go for its e-wallet app.
As for customers wishing to use their debit or credit cards at the petrol pumps, he said they will have to tap or insert their payment card and loyalty card before inserting their MyKad to verify their eligibility for the subsidised RON95.
“If they have no loyalty card, then it’s only a two-step process involving their payment cards and MyKad,” he added.
Although unsure of the final details, he said the system will be able to track the amount of subsidised petrol used by any eligible customer.
“For example, a person may get a quota of 100 litres of subsidised petrol a month, and the value of the subsidised amount will be subtracted accordingly.
“You will have to pay the full price once the quota is used up,” he added.
On Thursday, a 75-second social media post was uploaded on X showing how the MyKad reader works.
A woman could be seen and heard given instructions to another person on how to operate the card reader, which will tell if the customer is eligible for the subsidised petrol, along with whether their quota has been fully used.
Meanwhile, a worker at another petrol station said she was informed by the station owner via WhatsApp that the new payment system will be implemented by the end of this month.
“We were told that MyKad holders must come in person for visual verification if they want to purchase subsidised petrol.
“This is to prevent purchases by a proxy using another person’s MyKad,” she said.
In July, Prime Minister Datuk Seri Anwar Ibrahim said that under the targeted fuel subsidy scheme, eligible Malaysians would pay RM1.99 per litre for RON95, compared with the current price of RM2.05.
Anwar, who is also Finance Minister, said the initiative will benefit around 18 million motorists, including motorcyclists.
The eligibility criteria is based on multiple data sources, including income data from the Inland Revenue Board and the Household Income Survey from the Statistics Department.
On Sept 8, Finance Minister II Datuk Seri Amir Hamzah Azizan told Dewan Rakyat that the targeted subsidy for RON95 petrol will be rolled out at the end of the month, with the government at the final stage of concluding eligibility criteria and implementation methods.
On Friday, Home Minister Datuk Seri Saifuddin Nasution Ismail urged the public to check their MyKad and ensure the chip is functioning well in light of its use for identity verification when buying subsidised RON95.
