28/03/2026

SATURDAY | MAR 28, 2026

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‘Fuel quota limit not restrictive step’

stable and sufficient for all consumers.” He said disruptions in global energy flows could lead to volatility in fuel availability and pricing, making it crucial for governments to manage domestic consumption effectively to prevent shortages and panic buying. Saravanan said the revised quota is unlikely to significantly affect the majority of Malaysians as most consumers utilise less than 200 litres per month. “Instead, the move helps curb excessive consumption, minimise leakages and ensure that subsidies are better targeted towards genuine users who truly need them.” He said the policy also reflects a balanced approach by the government, particularly in its decision to maintain a higher quota for e-hailing drivers who rely heavily on fuel for their daily income.

He said the policy should be seen as part of a broader, calibrated reform approach rather than an abrupt shift. “It balances immediate cost-of living concerns with longer-term fiscal responsibility and energy security. Importantly, it does so without creating panic among consumers.” The Federation of Malaysian Consumers Associations described the government’s decision as a precautionary and strategic move amid ongoing global uncertainties. Its CEO Dr T. Saravanan said the adjustment should be viewed together with the geopolitical tensions which pose risks to global fuel supply chains and market stability. “From a logical and economic standpoint, this measure is aimed at strengthening national fuel security and ensuring that supply remains

Malaysia’s fuel subsidy bill has long been sensitive to global crude oil movements. With ongoing geopolitical tensions and uncertain energy markets, maintaining a blanket subsidy at higher consumption levels could place additional strain on government spending. Idham said by setting the cap at 200 litres, the policy effectively preserves support for the majority while discouraging excessive or non essential fuel consumption. He said by moderating demand for subsidised fuel, the government is better positioned to safeguard national reserves and ease pressure on domestic supply chains. “This is not outright rationing but it introduces a level of demand discipline. In an environment where global energy flows can be disrupted, such measures help build resilience.”

o From fiscal standpoint, it ensures public finances stay sustainable, with government being able to better manage subsidy expenditure, says economist

Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

raise concerns among motorists, the policy shift should be viewed through a pragmatic economic lens rather than as a restrictive measure. “From a fiscal standpoint, this allows the government to better manage subsidy expenditure at a time when global oil prices remain elevated and volatile. It ensures that public finances stay sustainable without removing subsidies altogether,” he said in his WhatsApp reply to theSun .

PETALING JAYA: The government’s move to temporarily adjust the monthly subsidised RON95 petrol quota from 300 litres to 200 litres from April 1 is unlikely to significantly impact the majority of households, said an economist. Universiti Teknologi Mara Malacca economy expert Dr Mohamad Idham Md Razak said while the adjustment may initially Mohamad Ashfar said under the new limit of 150 litres per purchase for diesel, bus operators would need to make additional stops to refuel. – AMIRUL SYA F IQ/THESUN

Concerns over rising petrol cost PETALING JAYA: Concerns are mounting over the potential cost impact on working Malaysians and small businesses following the government’s decision to amend the subsidised RON95 quota from 300 litres to 200 litres from April 1. Bumiputera Petrol Station Operators Association of Malaysia president Datuk Abd Aziz Sapian said such a drastic action should not be based on the average monthly petrol use by Malaysians. He acknowledged Prime Minister Datuk Seri Anwar Ibrahim’s justification for the move, which is based on the fact that nearly 90% of users consume below the 200-litre threshold. He said averages, however, do not reflect the realities faced by high-usage groups who rely on fuel as a daily economic input rather than a discretionary expense. Abd Aziz said the move affects active users, including delivery drivers, sales personnel and small traders. “Public policy cannot be assessed purely on averages. There will always be segments that consume more because their livelihoods depend on it.” Their concerns are amplified by the sharp rise in market fuel prices in recent weeks. According to the Finance Ministry’s weekly retail price announcements, unsubsidised RON95 prices climbed from RM2.59 per litre for the week of Feb 26-March 4 to RM3.87 per litre for March 26-April 1, a 49.4% increase in a month. Diesel prices in Peninsular Malaysia rose even more steeply from RM3.04 to RM5.52 per litre, marking an 81.6% jump over the same period. “Users who previously exhausted their 300-litre allocation by the third week of the month may now hit the 200-litre cap as early as the second week, significantly increasing their monthly fuel expenditure.” Abd Aziz said fuel costs for this group could rise by between 30% and 50%, depending on travel patterns and job requirements. He said the ripple effects are expected to extend to SMEs, many of which are still operating on thin margins following several challenging economic years. He added that higher fuel costs translate directly to increased expenses for logistics, site visits, field services and daily operations. “These costs do not disappear. They are either passed on to consumers through higher prices or absorbed through reduced activity, which may affect income and employment.” He said petrol station operators are experiencing structural pressures as regulated margins prevent them from gaining proportional benefits when retail fuel prices increase. – By Ikhwan Zulkaflee

Diesel purchase caps may disrupt long-haul bus service schedules

PETALING JAYA: The introduction of diesel purchase caps is set to pose timetable challenges for bus operators, with additional refuelling stops likely to disrupt tightly scheduled long-haul services in East Malaysia. Pan Malaysian Bus Operators Association president Datuk Mohamad Ashfar Ali told theSun that under the government’s new cap of 150 litres per purchase, bus operators would still be able to operate but would need to make additional stops at petrol stations to refuel. “Normal buses typically have fuel tank capacities of around 200 to 250 litres while 150 litres of diesel can allow a bus to travel approximately 450km. However, newer buses have much larger tanks of up to 400 litres. “Short-distance bus services are unlikely to be significantly affected but long-haul routes will require more careful planning as they depend on higher diesel consumption and fixed schedules.” Mohamad Ashfar also raised concerns over whether petrol stations along highways would Ű BY QIRANA NABILLA MOHD RAHIDI newsdesk@thesundaily.com

commercial fleets would be more operational than cost-driven. He added that these operators may need to refuel more frequently or adjust routing and scheduling to comply with the transaction limits. “Over time, this points towards a more managed fuel ecosystem where efficiency and planning become just as important as fuel cost.” Earlier, Prime Minister Datuk Seri Anwar Ibrahim said temporary restrictions on diesel usage would be implemented in East Malaysia as part of efforts to address smuggling and fuel leakage. He said in Sabah and Sarawak, the retail price of diesel would remain unchanged at RM2.15 per litre. Under the measures, private and light commercial vehicles in East Malaysia will be limited to 50 litres of diesel per purchase while land public transport and goods vehicles not exceeding three tonnes will be capped at 100 litres per purchase. Vehicles above three tonnes will be allowed a maximum of 150 litres per purchase.

have sufficient diesel supply, particularly during peak travel periods. He urged the government to ensure adequate diesel supply at highway stations to prevent any operational disruptions. “Long-distance bus operators will now need to make planned stops for refuelling, which could add around 20 to 30 minutes per stop. “This may slightly affect timetables as bus services operate strictly based on schedules. “I hope the public remains calm and understanding as minor delays may be unavoidable as operators adapt to the new system.” MY Mobility Vision senior adviser Wan Md Hazlin Agyl Wan Hassan said the introduction of fuel purchase caps is not intended to restrict access to fuel but to ensure that subsidised diesel is used for its intended purpose. “For most everyday users and lower utilisation vehicles, the limits are unlikely to disrupt normal refuelling behaviour as typical daily usage generally falls within the thresholds.” He said the impact on higher-utilisation segments such as logistics operators and