Cheaper RON95 fuel for Malaysians from Sept 30
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The Malaysian government set a monthly limit of 300 litres of subsidised RON95 for eligible individuals, but this would not apply to e-hailing drivers who could apply for a higher ceiling.
ST PHOTO: KUA CHEE SIONG
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- Malaysia introduces cheaper RON95 petrol pricing from Sept 30: RM1.99 per litre for MyKad holders from RM2.05 currently.
- However, Singaporeans are still only eligible for RON97 petrol, or non-subsidised RON95 if they are driving Malaysia-registered vehicles.
- The 300-litre monthly cap for subsidised RON95 petrol raises concerns among e-hailing drivers and those with long commutes.
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KUALA LUMPUR – Malaysians will soon enjoy cheaper RON95 fuel at the pumps, a benefit not afforded to foreigners, as Prime Minister Anwar Ibrahim aims to plug fuel subsidy leakages and redirect savings towards financial aid, healthcare, education and infrastructure.
Under the new pricing effective from Sept 30 that removes the blanket subsidy for petrol, Malaysians can pay for the popular RON95 petrol using their national identity card, called MyKad, at RM1.99 (60 Singapore cents) a litre, compared with RM2.05 a litre currently.
Foreigners driving Malaysian-registered cars will have to pay the market price for RON95 of around RM2.60 a litre. Drivers of foreign-registered vehicles – including those from neighbouring Singapore – will continue to be allowed to purchase only the premium RON97 grade at around RM3.21 a litre.
Datuk Seri Anwar, who is also Malaysia’s Finance Minister, said on Sept 22 that RON95 will be enjoyed by all Malaysians, regardless of income level, as a gesture of appreciation to the rakyat.
He also said the Malaysian government had set a monthly limit of 300 litres of subsidised RON95 for eligible individuals, but this would not apply to e-hailing drivers who could apply for a higher ceiling.
Singapore drivers who commute regularly to Johor Bahru were unperturbed by the announcement, but the move has been questioned by some Malaysian e-hailing drivers who rely on their petrol-powered vehicles for their livelihoods.
Mr Daniel Lim, 47, a Singaporean property agent who travels frequently to Johor Bahru for work and to purchase groceries, said he was unfazed by the news.
“Whenever I go to Malaysia, I pump RON97. That is my minimum standard because it is better and more efficient,” he told The Straits Times.
E-hailing driver Adli Dasuki, 30, told ST that the 300-litre monthly cap on subsidised RON95 is too meagre an amount, even for part-timers like him.
“I am not being ungrateful, but the subsidy is too minimal for me, as I’m trying to make additional income from e-hailing,” said Mr Adli, a Malaysian who lives in Pasir Gudang, Johor.
A father of two, Mr Adli works as a technician by day and takes e-hailing gigs daily from 8pm to midnight, earning RM600 to RM800 a month in extra income.
“A full-timer like my friend – his usage exceeds 700 litres a month, while mine is around 500 litres to 600 litres,” he noted.
Another e-hailing driver, Mr Zulkiflee Ismail, said that subsidised RON95 should rightly be reserved for Malaysians.
“Singaporeans should... not take subsidised fuel. Besides, RON97 is better quality for the car,” said the 48-year-old Singaporean, who drives to Johor several times a week for shopping and to top up his fuel tank.
The Finance Ministry is set to announce more details on Sept 23, including how e-hailing drivers can apply to be exempted from the 300-litre quota.
Apart from using MyKad, Malaysians can also purchase petrol using e-wallet Touch ’n Go, or petrol payment apps such as Petronas’ Setel and Caltex’s CaltexGo, the ministry said on Sept 22.
Malaysian long-distance commuter Calvin Tan, 31, a salesman who drives some 45km daily each way from Nilai, Negeri Sembilan, to his workplace in Puchong, Selangor, said that the 300-litre monthly cap falls short of what he needs, which is at least 360 litres a month.
“And my usage will go up if I have to travel to other states,” he added.
Meanwhile, petrol station owners said they were already bracing themselves for a rush ahead of early access to subsidised RON95 for army and police personnel on Sept 27, and for lower-income Malaysians on Sept 28.
“The hardware has been stocked. We are doing all that we can to prepare for the day,” said Mr Khairul Annuar Abdul Aziz, president of Petroleum Dealers Association of Malaysia.
“If there’s a hiccup, we hope customers will understand,” he told ST.
Mr Khairul Annuar added that employees would be focusing on front-end services to ensure operations run smoothly at all the 4,000 petrol stations nationwide.
Economist Ahmed Razman Abdul Latiff of Putra Business School said the subsidy move will help Malaysian drivers reduce their travelling expenses significantly.
“At the same time, the government will be able to gain some savings from this initiative as non-citizens and large companies will have to pay for RON95 at market price,” he told ST.
The government has said it hopes to save between RM2.5 billion and RM4 billion a year from the scheme.
The ministry’s latest announcement comes barely a month after the roll-out of the updated Sumbangan Asas Rahmah programme, where all Malaysians aged 18 and above received a one-off cash aid payment of RM100 through their MyKad.
