KUALA LUMPUR: THOSE who own just one car which is powered by an engine of no more than 1,500cc may be issued with a fleet card that will allow them to buy subsidised RON95 petrol.
Industry players the New Sunday Times spoke to, including those who were privy to discussions before Putrajaya announced the proposed revised fuel subsidy on Friday, said the system adopted by Putrajaya could largely mirror the one used in the management of subsidised diesel.
They said those eligible might have to sign up and register their car details with a petrol company of their choice.
It is understood that the Road Transport Department will be handling part of the checks, including the verification of the applicant’s eligibility based on the criteria set by Putrajaya.
The same could be expected on those using motorcycles below 125cc — the other group eligible for the subsidy.
RM2 billion has been allocated for the subsidy programme, which is expected to benefit some four million car owners and 2.6 million motorcycle owners.
“If this ‘debit card’ system is used, those eligible will be issued with a fleet card preloaded with 100 litres worth of subsidised RON95 petrol,” an industry source said, adding that it was possible for cardholders to carry the balance forward if they did not max their card out.
Industry players said an average of 1.2 billion litres of RON95 petrol were sold every month and that a RM2 billion allocation (for half a year) would subsidise 6.6 billion litres of petrol.
The source also cautioned that the system, if poorly implemented, would lead to smuggling of petrol across the border, where the price was steeper.
Finance Minister Lim Guan Eng, who tabled Pakatan Harapan’s maiden budget on Friday, announced that the government planned to provide a subsidy of 30 sen per litre of RON95 petrol for up to 100 litres a month for cars with an engine capacity of less than 1,500cc, and 40 litres per month for motorcycles up to 125cc. The subsidy does not cover owners of multiple vehicles.
Petrol Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz said the government must devise a seamless system in the interest of consumers and petrol dealers.
The system, he said, must allow his members to receive rebates without hassle.
“Currently, we buy (RON95) at RM2.10 and sell at RM2.20... if the government is allowing the subsidised group to buy at RM1.90, we lose 20 sen for every litre.
“For our members, whose bulk of customers are eligible for the subsidy, our rolling capital will be badly affected.
“That is why the rebate system must be favourable to us.”
He hopes that the preloaded fleet card will be introduced for the proposed petrol subsidy system.
“The card should come with the prequalified subsidised volume, together with the rebate that is given to dealers.”
He added that petrol dealers or their workers should not be tasked with any kind of enforcement duties.
“We don’t want to be ‘ enforcers’ who go after motorists by checking whether or not they are eligible for the subsidy,” he said.