RURAL dwellers are unclear if the government’s proposal to float petrol prices and grant targeted subsidies will benefit them, especially in places where petrol stations are few and far between.

In such places, petrol is sold in containers at sundry shops, often for more than the pump price.

“Petrol here costs 50 sen to RM1 more. If a litre costs RM2.20 out there, it costs RM2.70 here, and many sell at RM3,” said Norrikmal Rizal Manaf, 28, who lives in Jelawang, Kelantan.

He was talking about the price of RON95 petrol, which blanket subsidy Putrajaya intends to replace with a targeted subsidy of 30 sen per litre. 

This is capped at 100 litres a month for cars under 1,500cc, and 40 litres a month for motorcycles below 125cc.

The change, announced in Budget 2019, takes effect in the second quarter of next year.

Norrikmal questioned how the targeted subsidy would be enforced in rural areas where petrol was sold by the pack.

“With the float, I’m afraid we’ll be paying more than RM3 for a litre.”

He said in the nearby villages, petrol was typically sold at the sole sundry shop in the area, and it was usually sold out by 9am as people head to work. 

“You can’t get a full tank here. Motorcycles are limited to three litres each and cars to 10 litres. 

“There is another category of fuel for fishermen and grass cutters, and they are limited to five litres per day.”

The nearest petrol station is 45km away in Jeli, Norrikmal added.

In another part of Kelantan’s rural interior, Kampung Star in Gua Musang, there are no licensed petrol vendors.

Siti Fatimah Mohamad, 37, who runs a small sundry shop, said the small businesses would be glad to sell petrol to the villagers except for the trouble they would have with the law.

“Small-time operators like us, how can we afford a licence?”

The closest petrol station to her village was 32km away, she said.

Licensed seller, Norhayati Musa who runs a sundry shop in Dabong, some 80km from Kuala Krai, said the 166 litres she was allowed to sell per day was not enough to meet demand.

Norhayati said she often ran out and had to buy more to sell – at a higher price due to transport costs.

“We have a licence and Petronas in Jeli sends 664 litres every four days. Other stores have to find petrol elsewhere to sell and hence they sell at up to RM3 per litre because of the transport costs.”

The petrol float and eligibility by engine capacity for targeted subsidies have also raised questions about its viability for those in Sabah who need four-wheel drive (4WD) vehicles for the state’s poorly maintained roads.

Former state minister Masidi Manjun tweeted that the poor condition of rural roads in Sabah should be considered.

“Many opt for 4WD vehicles over 1,500cc engine capacity out of sheer necessity. Upgrade Sabah’s rural roads before enforcing the eligibility rule nationwide,” he said.

About 60% of drivers in the state own 4WDs and use them for their daily commute. Only a small number are from the lower income group. And while most trucks are diesel-powered engines, a small number use petrol.

But truck owners are unclear about what to expect, since diesel prices were not mentioned in Budget 2019. Diesel currently retails at RM2.18 per litre.

Entrepreneur Neil Stephen said the petrol float might mean he had to fork out more to fuel his Toyota Hilux, which maintenance was costly as it was.

“We are already paying the full amount for diesel and it is almost the same as pump prices for RON95. The subsidy is good for small car owners but not for many Sabahans who have no choice but to use 4WD due to the terrible road conditions, even if they have petrol engines.

“The poor roads makes the maintenance of our cars much more expensive,” said the 40-year old.

Engineer Francis Robert, 40, also complained of high maintenance bills for his Hilux and no relief from the targeted subsidy.

He also questioned how the government would get the funds for the targeted subsidy, and if Sabahans would be burdened with higher taxes.

“For example, will the federal government raise the road tax in Sabah, which is cheaper in the state compared to Peninsular Malaysia.”

Ford Ranger driver Julius Sidin said subsidies should be given to diesel car owners, too, in view of bad road conditions.

“In Borneo, we have no choice but to buy a truck due to bad road conditions which is a tier lower than west Malaysia. 

“If the targeted subsidy is applied throughout Malaysia, then we will not benefit from it as much compared to west Malaysians, ” he said. 

The proposed targeted subsidy for cars has also been criticised for benefiting the rich driving luxury marques that are below 1,500cc, such as the BMW 3 Series 318i Luxury, Audi A4 1.4 TFSI and the new Mercedes-Benz C200, while leaving out owners of cheaper makes that include Proton Exora (1,600cc), Proton Preve (1,600cc) and Proton Suprima (1,600cc). – November 6, 2018.