Malaysian Tamilan Tow Truck Association Questions Diesel Subsidy Effectiveness
Quick Look
The Malaysian Tamilan Tow Truck Association questions the effectiveness of a new MyKad-based diesel subsidy program, citing concerns over insufficient allocations and potential supply shortages, similar to issues faced with the current Budi95 program.
AI-generated summary
Why It Matters
Malaysia is implementing a new MyKad-based mechanism for purchasing subsidised diesel, aiming to align retail prices across the country.
Malaysian Tamilan Tow Truck Association president Mathevaanan Mohanaraja said the effectiveness of the initiative would ultimately depend on how much subsidised diesel each identity card holder was entitled to receive.
He noted that many users already found the allocation under the current Budi Madani RON95 (Budi95) programme insufficient for their needs.
“Our fuel consumption is high. Even 100 litres can be used up very quickly. So we are not sure if the allocation will be enough, and it probably won’t be,” he said.
“Another issue is supply. Sometimes petrol stations do not have sufficient diesel. The government may say supply is available, but the reality on the ground can be different.”
His comments came after the Finance Ministry announced that Malaysians would be entitled to purchase subsidised diesel through a MyKad-based mechanism, similar to the Budi95 petrol programme. The retail price of diesel in Sabah and Sarawak will also be aligned with that in Peninsular Malaysia.
Open Questions
- What is the exact diesel allocation per MyKad holder?
- Will supply chain issues be resolved?
- How will this affect overall fuel costs for businesses?
