Diesel subsidy: Don’t provide cash to avoid misusage

SHAH ALAM - The government is advised to channel diesel subsidies through a special medium that can only be accessed by hawkers and small traders, as a mechanism to ensure that cash aid provided is spent solely on fuel to control price increases.

Malaysian Hawkers and Traders Association president Datuk Seri Rosli Sulaiman expressed optimism about the implementation of diesel subsidy adjustments announced by the government.

However, he highlighted concerns over the distribution mechanism to traders, which required special attention.

He explained that if the subsidies were not channelled to the right group and were not utilised prudently, it could lead to significant and uncontrolled price increases.

“A special platform should be used so that the government can ensure that this diesel subsidy can only be used for diesel refuelling. We already have the In2Niaga system launched under the Entrepreneur Development and Cooperatives Ministry (Kuskop). Only legitimate traders are eligible for access to this debit card.

“We can use the In2Niaga platform as a condition and mechanism for subsidy distribution, and we are ready to be monitored by government agencies through it.

“There is no need to provide cash to small traders, but allocate subsidies through In2Niaga card access, which can be set to be used only for diesel,” he told Sinar.

The announcement of diesel subsidy adjustments by Prime Minister Datuk Seri Anwar Ibrahim indicated that the government continues to provide diesel subsidies to traders using diesel-powered commercial vehicles.

This involves ten types of public transport vehicles and 23 types of goods transport vehicles under the Subsidised Diesel Control System (SKDS), including bus and taxi operators.

The government also agreed to provide cash assistance to eligible individual diesel vehicle owners, including small farmers, paddy farmers and small traders.

Rosli further explained that the use of diesel-powered commercial vehicles by small traders was unavoidable, requiring an average cost of about RM600 per month for purchasing raw materials, including commuting to business locations such as night markets, which involve different areas daily.

However, he emphasised that under any circumstances, small traders must prioritise customer interests by offering lower selling prices compared to restaurant operators, who clearly have higher operational costs.

“Obtaining diesel subsidies through the right methods provides a strong reason for small traders not to arbitrarily increase selling prices.

“It is difficult to guarantee no price increase, but at least it remains under control,” he added.