SHAH ALAM - Petrol station operators are increasingly facing financial strain as they effectively act as unofficial financiers of Malaysia’s diesel subsidy system, according to the Malay Chamber of Commerce Malaysia (DPMM) and the Malay Economic Action Council (MTEM).
DPMM president Norsyahrin Hamidon, who also chairs MTEM, said both organisations have received complaints from the Bumiputera Petrol Station Operators Association (Bumipeda) about the growing financial pressure caused by rising diesel prices and the current payment structure.
Under the targeted diesel subsidy scheme, operators must purchase diesel at the full market price of about RM6.02 per litre, but sell it to consumers at the subsidised rate of RM2.15 per litre. The difference is later claimed by oil companies from the government, placing the financing burden temporarily on station operators.
“Although transactions are completed digitally at the pump, operators only receive the full payment, including the subsidy component, after a delay of T+1 or longer. This creates a funding gap between the point of sale and cash reimbursement, effectively locking working capital within the system.
“In an environment of high prices and large sales volumes, the delay can reach hundreds of thousands of ringgit at any one time, forcing operators to rely on short-term financing and incur additional financial costs,” he told Sinar Daily.
Despite retail fuel prices being controlled through mechanisms such as the Automatic Pricing Mechanism and targeted subsidies, operators still face higher base supply costs.
As last-mile distributors, their role is critical in ensuring fuel reaches consumers, yet the structure governing capital payments and reimbursements remains problematic.
“With estimated sales of 20,000 litres per day and a minimum stock requirement of three days, operators need to provide approximately RM361,200 to maintain basic operating stock.
“At the same time, the subsidy gap of RM3.87 per litre forces operators to advance approximately RM77,400 per day from their own capital.
“Combined, the total operational capital exposure can reach nearly RM440,000, effectively positioning petrol station operators as unofficial financiers of the national subsidy system,” he added.
DPMM and MTEM stressed that the matter requires urgent attention and called on the relevant ministries to address the issue promptly to ensure no group is unfairly burdened without a comprehensive solution.