MEF supports win-win fuel rationalisation


PETALING JAYA: Fuel rationalisation must be implemented in a way that balances economic sustainability, business continuity and national resilience, says the Malaysian Employers Federation (MEF).

Its president Datuk Dr Syed Hussain Syed Husman said the organisation will work with Putrajaya to ensure the measures are carried out responsibly amid ongoing global uncertainties.

He said all segments of society should play an active role in conserving fuel and using energy more sustainably, particularly as geopolitical tensions in the Middle East continue to drive volatility in global energy markets.

“MEF supports the government’s fuel rationalisation efforts and calls on all stakeholders to act decisively and responsibly in managing fuel consumption,” he said.

“The rationalisation requires a whole-of-nation approach, where policymakers provide clear direction and support, businesses improve efficiency and innovation, and the public adopts more responsible consumption habits.”

He also urged businesses to accelerate their transition towards sustainable practices and alternative energy sources, including investing in renewable energy such as solar and gradually adopting electric vehicles where feasible.

The subsidised RON95 petrol allocation will be reduced to 200 litres starting April 1, as part of the government’s temporary measure to ensure supply stability and manage demand prudently due to the conflict in the Middle East.

Meanwhile, Malaysian Trucking Federation president Datuk Ng Koong Sinn said the government should shift to a real-time diesel subsidy system, as the current “pay-first, rebate-later” model is placing severe financial pressure on small- and medium-sized transport operators.

He said that while targeted assistance is commendable, the current mechanism is pushing operators towards a liquidity crisis.

“The rebate payment only comes at the end of the month, meaning operators are effectively providing an interest-free loan of nearly RM300,000 to the system while struggling to pay driver wages, spare parts and vehicle maintenance costs,” he said.

“Most small businesses simply do not have this kind of liquid cash, and we are being forced to choose between refuelling our vehicles or paying our staff.”

He added that operators must also be selective in their routing.

Ng illustrated the burden using a modest fleet of 10 lorries, each consuming 200 litres of diesel a day.

“At the current price of RM5.52 per litre, the operator must spend RM11,040 daily just to keep the vehicles running. Over a month, this amounts to RM287,040 in upfront fuel costs,” he said.

“As such, the government should transition to a real-time subsidy deduction at the pump. At the very least, a weekly rebate cycle should be implemented to prevent the total collapse of our business cash flow.”

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