Kuala lumpur: The Land Public Transport Transformation Association (TPAD) has put forward a proposal for the government to establish distinct fuel subsidy mechanisms for personal consumption and e-hailing operations. The initiative aims to ensure a fairer and more targeted approach to subsidy implementation.
According to BERNAMA News Agency, TPAD President M. Nathan emphasized that the first 200 litres of fuel should be retained under the subsidy allocation for personal use by Malaysians. This allocation should remain separate from any subsidy mechanism designated for e-hailing operations. Nathan highlighted that while some full-time e-hailing drivers might find the existing 800-litre allocation insufficient, it generally meets the needs of the majority. He questioned the necessity of including the 200-litre personal use allocation within the same mechanism as the 800 litres reserved for e-hailing.
Nathan explained that commercial operations, such as e-hailing, should have a distinct subsidy mechanism since the fuel is utilized to deliver public transport services to the community. He made these remarks to reporters after submitting a memorandum on proposed improvements to the BUDI MADANI RON95 (BUDI95) initiative mechanism and an application for an e-hailing insurance moratorium to the Ministry of Finance.
Currently, under the BUDI95 initiative, the ceiling limit for e-hailing and gig workers stands at 800 litres. Nathan suggested introducing an e-hailing fleet card as a dedicated subsidy mechanism to enhance transparency, provide more targeted assistance, and facilitate easier monitoring. The proposed card would offer an additional quota of up to 800 litres for e-hailing operations, separate from the first 200 litres allocated as a subsidy for personal use.
Furthermore, Nathan proposed forming a technical committee including representatives from the Ministry of Finance, Ministry of Transport, Land Public Transport Agency, Ministry of Domestic Trade and Cost of Living, e-hailing platforms, and TPAD as the official representative of e-hailing drivers. The committee would assess the industry's actual operational requirements before adjusting subsidy policies or their implementation mechanisms.
TPAD is also advocating for a complete moratorium on annual and daily e-hailing insurance premiums until a fair, transparent, and sustainable premium mechanism is put in place. Nathan pointed out that rising insurance premiums have significantly impacted drivers' net incomes. With fares not being comprehensively reviewed, many drivers are struggling to continue their operations legally.