No Supply Disruption at Petrol Stations, Budi Diesel Transactions Below 10 Percent – PDAM

SHAH ALAM: The Malaysian Petrol Station Operators Association (PDAM) expects no major supply disruptions or diesel storage capacity issues at petrol stations following the implementation of Budi Madani Diesel (Budi Diesel) and the Subsidised Diesel Control System (SKDS) 2.0 in Sabah and Sarawak starting Wednesday.

PDAM said based on preliminary observations, the current number of Budi Diesel transactions is still less than 10 percent of total diesel sales.

It said overall, PDAM expects petrol station operations to proceed as usual, particularly in Peninsular Malaysia.

“This is because the volume of diesel purchases through the Budi Diesel mechanism for individual users is expected to remain small compared to total diesel sales at petrol stations.

“The majority of the country’s diesel consumption still comes from the commercial, transport and logistics sectors, most of which continue to purchase diesel through existing mechanisms such as SKDS and fleet cards,” it said in a statement.

Therefore, PDAM emphasised that any increase in demand from individual users is expected to be at a controlled level and can be absorbed by the logistics network and petrol station storage capacity.

According to the association, from a system readiness perspective, initial implementation has shown that MyKad verification integration at payment terminals has been running relatively smoothly.

“However, PDAM observes that at the customer and daily station operation level, we are still in the education and adjustment phase. There are still users who are unclear about eligibility, permitted vehicle types, subsidy quotas and the method of purchasing subsidised diesel.

“PDAM also expects greater attention to be focused on Sabah and Sarawak, given that the implementation of SKDS 2.0 and Budi Diesel is taking place simultaneously in both states,” it said.

PDAM anticipates that station operators, local customers, commercial users and non-citizen users will need some time to familiarise themselves with the new purchasing methods, particularly when ineligible users need to pay market prices.

In this regard, PDAM hopes that authorities will provide full support throughout the first week of implementation, not only in terms of enforcement but also in terms of public communication and consumer education.

“Petrol station operators should not be left alone as the frontline to explain subsidy policies to customers, especially when confusion or disputes arise at the pump area.

“PDAM also takes note that oil companies have provided initial training to station representatives through user manuals, operational guides and frequently asked questions.

“However, large-scale policy implementation such as this still requires continuous communication support from the government, oil companies and implementing agencies to ensure that information reaching consumers is clear, consistent and easy to understand,” it added.

From the perspective of managing two types of diesel, namely B7 at market price and B10/B15 eligible for the RM2.10 per litre subsidy, PDAM is of the view that this does not pose any extraordinary operational challenges to station operators.

It explained that existing sales and pump systems have long managed products at different prices, such as subsidised RON95 and RON97 at market price, but communication to customers needs to be strengthened so that users understand the differences in subsidy eligibility according to product types and user categories.

On Tuesday, the Ministry of Finance (MOF) informed that approximately 700,000 private vehicle owners nationwide will enjoy subsidised diesel at RM2.10 per litre through the implementation of Budi Diesel starting today.

The implementation is expected to benefit approximately 400,000 private diesel vehicle owners in Peninsular Malaysia and another 300,000 in Sabah, Sarawak and the Federal Territory of Labuan.

In addition, approximately 70,000 commercial and goods transport vehicles in Sabah, Sarawak and the Federal Territory of Labuan are now eligible to purchase subsidised diesel at RM2.15 per litre under SKDS 2.0.

Sinar Harian