The removal of diesel fuel subsidies in Peninsular Malaysia is causing severe economic hardship for petrol station operators. 98% of stations are reporting losses, forcing many to rely on convenience stores for revenue. This trend threatens higher unemployment, reduced government income from taxes, and disruption to local economies.
According to Bumiputera Petrol Station Operators Association of Malaysia honorary secretary Datin Hanny Julia Haron, the subsidy rationalisation for diesel fuel in Peninsular Malaysia had faced operators with a severe economic challenge.
“About 98% of petrol stations are reportedly suffering losses from petrol and diesel sales, forcing many to shift their focus to convenience store operations in a bid to offset declining fuel revenues,” Hanny Julia said, adding that the current trend could lead to higher unemployment rates and reduced government revenues from taxes and levies.
Closures of stations, or scaled-down operations would also disrupt local economies, which will affect businesses like workshops and other retail outlets, she added. “The APM must be aligned with the national annual budget to reflect today’s economic realities,” stating her view that the automatic pricing mechanism , which has been in place since 1983, needs to be reviewed. Hanny Julia also raised concerns for confusion and instability due to dual pricing for fuels within the same storage tank, as operators are forced to buy fuel at high prices but sell it at lower prices.Open roads and closed circuits hold great allure for Mick Chan.
Malaysia Diesel Subsidy Petrol Stations Economy Government Revenue
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