PETALING JAYA: Transporters say the current diesel subsidy system, which requires upfront payment before rebates are issued, is pushing them to the brink of a liquidity crisis.
The Malaysian Trucking Federation said the "pay-first, rebate-later" model, while aligned with targeted subsidy efforts, does not reflect the daily financial realities faced by small-to-medium transport operators.
Its president Datuk Ng Koong Sinn said operators must pay the full market price of RM5.52 per litre upfront, with rebates only reimbursed at the end of the month.
"For a modest fleet of 10 lorries, each consuming about 200 litres of diesel daily, operators must fork out RM11,040 every day just to keep operations running.
"Over a month, that amounts to RM287,040 in upfront fuel costs," he said in a statement on Friday (March 27).
Ng said this effectively requires operators to fork out RM300,000 while still having to cover wages, maintenance and other operational expenses.
"Most small businesses simply do not have that kind of liquidity.
"We are being forced to choose between refuelling our vehicles or paying our staff," he added.
He urged the government to consider implementing real-time subsidy deductions at the pump or introducing a shorter rebate cycle, such as weekly payments, to ease the burden.
Without intervention, he warned, small-to-medium transport operators risk severe financial strain.
