Malaysia Oversight

Subsidy rollout sparks jitters among petrol dealers awaiting clarity

By NST in September 21, 2025 – Reading time 2 minute
Subsidy rollout sparks jitters among petrol dealers awaiting clarity


KUALA LUMPUR: Preparations for the targeted RON95 petrol subsidy are underway, with some stations already receiving equipment and training staff on the system, New Straits Times checks found.

At a station in Cheras, a worker said the machines had arrived but staff were not yet trained on their use.

He said details would be confirmed only after the government’s announcement, expected by the end of the month.

A worker at a Setapak station said briefings had been held, but no detailed instructions were given, adding that machines would be delivered in phases.

Interest in the mechanism of the subsidy, which will fix RON95 petrol at RM1.99 per litre, has grown after a video of a supplier training others on using a terminal went viral.

The one-minute, 13-second clip showed a person inserting a MyKad into a terminal, checking eligibility markers and generating receipts.

The video has sparked discussion on how quotas will be enforced, whether terminals will be integrated into pumps and what safeguards will be in place against technical failures.

Finance Minister II Datuk Seri Amir Hamzah Azizan had said determining subsidy eligibility would draw on information in the Central Database Hub and cross-referenced with data from other agencies.

Bumiputera Petrol Dealers Association president Datuk Abdul Aziz Sapian said dealers were still awaiting guidance on the system.

“While there have been preliminary discussions, the full guidelines — including SOPs for system integration, the role of oil companies and cost-sharing – have yet to be detailed,” he said.

Aziz said there were concerns about Internet stability in rural areas and potential inconsistencies among the systems of different oil companies.

He warned against repeating issues faced under the Automatic Pricing Mechanism, where dealers had to buy fuel at market prices and sell it the subsidised rate before being reimbursed.

“Contingency plans must exist in case the MyKad system fails at pumps, so the public is not denied subsidies and operators are not penalised,” he said.

Petroleum Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz said readiness would likely vary across stations and brands.

“The targeted subsidy, which requires verifying eligible customers, is a separate and more complex matter.

“We hope all issues will be resolved before the launch, and we will continue to work with the authorities to ensure smooth implementation.”

At press time, the Finance Ministry has not replied to a request for comment.

© New Straits Times Press (M) Bhd



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