Anwar Orders Direct Talks with Oil Firms Over Financial Losses Incurred by Petrol Station Operators

KUALA LUMPUR, July 7 — The Federal Government will actively gather detailed information and initiate high-level discussions with major oil corporations regarding allegations that petrol station operators suffered considerable financial losses during the country’s transition to the newly enhanced targeted fuel subsidy mechanism.

Prime Minister Datuk Seri Anwar Ibrahim gave this assurance during Minister’s Question Time in the Dewan Rakyat today, stating that the administration deeply values the structural cooperation extended by both multinational oil firms and local petrol station dealers. Their shared commitment, he noted, has been foundational in rolling out the targeted RON95 petrol and diesel subsidy programmes smoothly across the nation.

Anwar, who also serves as the Finance Minister, was addressing a supplementary query raised by Ipoh Timur Member of Parliament Howard Lee Chuan How. Lee highlighted mounting industry concerns that individual petrol station operators reportedly incurred losses ranging between RM40,000 and RM50,000 due to rapid inventory adjustments during the transition in subsidised fuel pricing windows.

“With regard to the issue raised, I will ask the Second Finance Minister (Datuk Seri Amir Hamzah Azizan) to help obtain further details and also hold discussions with the oil companies. So far, they have given their full cooperation. Otherwise, it would not have been possible for us to implement the targeted RON95 petrol and diesel subsidies effectively. If there are any shortcomings that have been highlighted, insya-Allah, we can discuss them and work towards a good solution,” the Prime Minister told the august House.

Defending the phased rollout of the sweeping fiscal reforms, Anwar explained that the government deliberately refrained from rushing the implementation of diesel subsidy overhauls because it was crucial to carefully navigate the more complex logistics in East Malaysia compared to Peninsular Malaysia. He emphasized that higher per-capita diesel consumption, extensive geographic distances separating rural interior settlements, and a more limited density of retail petrol stations required meticulous assessment before any sweeping economic policies could be enforced in Sabah and Sarawak.

In a bid to continually fine-tune the ongoing targeted assistance matrix, the Prime Minister announced that strategic improvements to the BUDI MADANI Diesel programme (BUDI Diesel) have been successfully institutionalised. Under the revised framework, eligible owners of diesel-powered pickup trucks and jeeps can formally apply for an additional 100-litre subsidised quota, expanding their total state-backed monthly entitlement to 300 litres. Anwar disclosed that the response has been swift, noting that as of yesterday, approximately 200,000 citizens have already been approved for the expanded quota allocation.

-NMT