RON95 Subsidy Ceiling Exemption Timely Boost For Gig Economy

KUALA LUMPUR, Sept 24 (Bernama) -- The move to exempt e-hailing drivers from the 300-litre monthly subsidised ceiling of RON95 petrol, effective Sept 30, is viewed as timely in meeting the needs of the gig industry, which relies heavily on the fuel for daily income.

Grab Drivers Malaysia Association (GDMA) president Mohd Azril Ahmat welcomed the government’s decision, saying the 300-litre monthly quota set for ordinary users was insufficient for full-time e-hailing drivers.

“On average, e-hailing drivers use between 25 and 30 litres of petrol a day. Based on this, the 300-litre quota only lasts about 10 days, so it’s not enough for us.

“To keep up with work requirements for a month, e-hailing drivers need at least 700 to 800 litres of petrol,” he said when contacted by Bernama.

However, Mohd Azril stressed that the exemption from the subsidy limit for e-hailing drivers must be supported by a strict verification mechanism to prevent abuse and leakages that could defeat the purpose of the targeted subsidy.

“Collaboration between the government and e-hailing companies is needed to obtain accurate data and prevent abuse, such as by those who apply for the exemption but only make one or two trips a month.

“The verification mechanism needs to be refined to ensure only genuine drivers receive the benefits and that the subsidy is used specifically for e-hailing. We (the association) are still discussing the best method to ensure more accurate implementation,” he said.

Prime Minister Datuk Seri Anwar Ibrahim on Monday announced that the price of RON95 petrol would be reduced to RM1.99 per litre from RM2.05 under the BUDI MADANI RON95 (BUDI95) initiative.

According to the Finance Ministry, the BUDI95 system would first open on Sept 27 for 300,000 military and police personnel, followed by B40 recipients of Sumbangan Tunai Rahmah (STR) cash aid on Sept 28. 

It would then be made available from Sept 30 to 16 million Malaysians aged 16 and above with a valid MyKad and driving licence.

Under BUDI95, all Malaysians are eligible for a monthly subsidised quota of up to 300 litres of RON95 petrol, but e-hailing drivers would be exempt from the limit and may apply for a higher amount.

For e-hailing driver Ahmad Kamal Mohamed Hussin, 59, the government’s move would directly help reduce the daily operating costs of the group.

“Through this initiative, we can save on petrol expenses, giving drivers a chance to boost their income,” he said.

According to Ahmad Kamal, savings from the subsidy could help cover vehicle maintenance and help ease the burden on e-hailing drivers.

P-hailing rider Nurhazirah Mohd Anuar, 26, said the six-sen reduction in the price of RON95 petrol per litre might seem small to some but had a big impact on others, including herself.

“Refuelling alone can cost between RM600 and RM800 a month depending on distance and the number of deliveries, not including maintenance. So even if the six-sen cut looks small, it still gives us some relief,” she said.

Nurhazirah also expressed hope that the targeted subsidy would continue and be improved, since their income was uncertain and influenced by factors like weather and demand.

--BERNAMA