CYBERJAYA, Oct 3 — The government will announce a revised rate for the Automatic Pricing Mechanism (APM) soon to ensure the sustainability of petrol stations following the implementation of the targeted RON95 petrol subsidy.
Domestic Trade and Cost of Living Minister (KPDN) Datuk Armizan Mohd Ali said a proposal to review the rate has been submitted to the Finance Ministry (MOF), following engagement sessions with petroleum companies and petrol station associations.
"The MOF has committed, as an initial step, to prioritise the review of the APM rate," he told the media after presenting fleet cards at a petrol station here today.
"The implementation of the Subsidised Diesel Control Scheme (SKDS) took a considerable time to implement, so we aim to execute the Subsidised Petrol Control Scheme (SKPS) as soon as possible, ideally within a month of the targeted subsidy's launch."
Armizan said the government is satisfied with the close cooperation of oil companies and petrol station operators in ensuring the smooth implementation of the subsidy, adding that some minor issues were resolved promptly.
"The government had previously committed to reviewing the APM rate and addressing other long-standing industry concerns," he said, adding that the review is crucial as it ensures operational costs and profit margins are factored into the mechanism.
In a separate matter, Armizan said KPDN will take stern action against public transport companies that instruct their employees to use their identification cards to purchase subsidised fuel at the public rate of RM1.99 per litre.
"The RM1.99 subsidy is intended for individual citizens. Companies should not exploit this system, as they already receive a subsidised rate of RM2.05, which is already significantly below the market price."
Recently, allegations that a company had instructed its employees to use their personal identification cards to purchase fuel under the BUDI95 subsidised scheme surfaced on social media.
