The Petroleum Dealers Association of Malaysia (PDAM) has called on the government to delay the planned rationalisation of RON95 fuel subsidies until two major issues, which it says are vital to the survival of the industry, are properly addressed.

Representing the interests of 4,000 petrol stations across the country, the association cautioned that pressing ahead without resolving these matters could severely undermine the viability of station operators, especially those running low- to medium-volume outlets.

According to its president, Datuk Khairul Annuar Abdul Aziz, one key concern is the outdated Automatic Pricing Mechanism (APM), which has not been revised since 2019 and no longer reflects the actual costs of operating a station.

“Without a margin revision, small and medium-volume station operators will face losses from the very first day of the RON95 subsidy rationalisation implementation,” he said in a statement.

He also highlighted concerns about the Merchant Discount Rate (MDR), noting a structural mismatch between how MDR fees and dealer commissions are calculated. 

“MDR charges are calculated as a percentage of the sale price, while dealers’ commissions are based on litres sold. As pump prices increase under the RON95 subsidy rationalisation, MDR rises accordingly, but dealer commissions remain static, resulting in further erosion of margins.”

Second Finance Minister Datuk Seri Amir Hamzah Azizan recently confirmed that the rationalisation of RON95 subsidies is scheduled to begin in the second half of the year. He also noted that the Ministry of Finance remains committed to the broader rationalisation process, with current efforts focused on identifying eligible recipients.

In a separate matter, Khairul Annuar took aim at a group claiming to represent Bumiputera fuel retailers, which alleged that station operators had not been consulted about the upcoming changes.

“The claim that there has been no consultation with station operators is inaccurate and misleading to the public. As the only association that has represented the industry for over 40 years, we remain guided by the principles of collaboration and transparency.

“PDAM is open to working with any party that genuinely seeks to advance the interests of the industry based on facts and responsible engagement, without misrepresenting public perception or politicising sensitive issues.”

(Source: NST) 

• TAGS:
• Datuk Khairul Annuar Abdul Aziz
• Datuk Seri Amir Hamzah Azizan
• Fuel Subsidy
• PDAM
• Petroleum Dealers Association of Malaysia
• RON95
• RON95 fuel subsidy rationalisation