SHAH ALAM, June 29 — KDEB Waste Management (KDEBWM) has appealed to the government to consider extending the scheduled diesel subsidy to its 800 Roll-On Roll-Off (RORO) lorries following a sharp rise in operating costs, which now total almost RM5 million a month.
Its managing director Dato' Ramli Mohd Tahir said that only the company's 500 compactor lorries currently qualify for the diesel subsidy, while all RORO lorries are still required to purchase diesel at market prices.
“We once again appeal to the government to hear our concerns, as KDEBWM's 800 RORO lorries are not eligible for the scheduled diesel subsidy.
“These RORO lorries are not heavy vehicles; they have a capacity of only 7.5 tonnes and are used to transport bulky waste and cleaning debris that cannot be compacted. They need to make repeated trips to landfill sites to dispose of the waste.
“Previously, each lorry could make up to three trips a day. However, with higher diesel prices, our operating costs have risen while service charges remain unchanged. We are no longer able to absorb these additional costs,” he said.
Ramli was speaking at a media conference following the signing of a memorandum of understanding between KDEBWM and TM Enviro Industries Sdn Bhd, which was also attended by the company's chief executive officer Theevan Padma at KDEBWM's headquarters today.
He added that the company's monthly diesel expenditure had increased significantly from approximately RM2.5 million to nearly RM5 million due to rising fuel prices.
This has placed considerable pressure on daily operations, particularly because the lorries must make multiple trips to landfill sites or processing facilities.
In an effort to control rising operating costs, some RORO lorries now make only one trip a day to landfill sites, compared with up to three trips previously.
“Previously, if a lorry filled 100 litres of diesel at around RM2 per litre, the cost was about RM200. Now, at approximately RM4.50 per litre, the same amount costs RM450.
"Our costs have increased, but our service charges remain unchanged. With diesel prices having risen by more than 100 per cent, the company can no longer maintain three trips per day for each RORO lorry because there is no allocation to cover the additional operating costs," Ramli said.
The situation is made even more challenging because payments for services from local authorities are typically received only after 60 to 75 days, further straining the company's cash flow.
“We are not collecting gold, tin ore or oil to sell for profit. We are a public service provider on behalf of the state government, responsible for carrying out waste collection and cleaning services,” he said.
Ramli noted that the matter has been raised at several forums and through official letters submitted to the relevant ministries.
“Menteri Besar Dato' Seri Amirudin Shari has also written to the Domestic Trade and Cost of Living Ministry (KPDN) and the Finance Ministry (MOF) regarding this matter, but KDEBWM has yet to receive any response.
“These additional costs amount to millions of ringgit every month and must be borne by the company, even though we are part of the state government.
“We hope due consideration will be given because waste collection is an essential public service,” he said.
On Tuesday (June 23), the government announced a new diesel subsidy mechanism under the BUDI Diesel Programme, which will take effect from July 1.
It also announced two improvements to expand the benefits of the diesel subsidy to small traders and to review quotas under the Subsidised Diesel Control System (SKDS).
Eligibility for the subsidy covers diesel vehicles registered under individuals through the BUDI Diesel Programme, as well as eligible goods transport vehicles under the SKDS.
However, no announcement has yet been made regarding the extension of the scheduled diesel subsidy to other categories of vehicles.
