The upcoming Budi95 quota adjustment, which can see the 300 litre monthly quota for RON 95 petrol under the Budi Madani RON 95 fuel subsidy programme being temporarily adjusted to 200 litres a month – at the moment subsidised rate of RM1.99 per litre – from April 1 won’t impact e-hailing drivers, as their monthly quota of 800 litres will remain in place.
The retention of that quota has drawn a mixed response from different e-hailing groups. Sahabat E-hailing Malaysia (SEM) believes that the 800-litre amount is insufficient for high-mileage drivers, a few of which devour as much as 40 litres of petrol a day, forcing them to pay the unsubsidised market rate for RON 95 after exhausting their quotas before the tip of the month.
As such, the group has urged the federal government to review the subsidy mechanism for e-hailing, the Latest Straits Times reports. “Even before the Middle East conflict, e-hailing drivers were facing a dire financial situation as fares were inadequate to cover operating costs. Now, some are forced to pay for unsubsidised RON 95 ranging from the center of the month after hitting their limit,” SEM said in a press release.
The group criticised different eligibility criteria and quotas set for e-hailing drivers, diesel-based vehicles and airport taxis. It said using the previous month’s travel record as a prerequisite to find out a quota was unfair. “The requirement for e-hailing drivers to satisfy a minimum travel distance is a biased policy that primarily advantages service provider firms,” it said.
Under the present tiered system, e-hailing drivers must clock over 5,000 km a month to qualify for the utmost 800-litre quota. Those covering between 2,000 km and 5,000 km receive 600 litres, while those under 2,000 km are entitled only to the bottom quota.
The group said many drivers risked losing their additional quotas since the eligibility criteria didn’t account for unexpected circumstances, comparable to losing access to their vehicle through accidents or vehicle breakdowns. “By April, more drivers are expected to lose their additional quotas because they may not meet trip requirements through the Ramadan and festive period,” it added.
Individually, one other group says the federal government’s decision to take care of the monthly ceiling of 800 litres for e-hailing drivers and gig employees is a timely move to stabilise operating costs, Bernama reports.
Malaysian E-hailing Coalition (GEM) chief activist Masrizal Mahidin said the move to retain the 800-litre quota is anticipated to spice up demand for e-hailing services. “The temporary quota adjustment is anticipated to encourage more users, especially in urban areas, to go for e-hailing as a substitute of using their very own vehicles, thereby creating opportunities for higher income amongst drivers,” he said.
Masrizal added that maintaining the quota for e-hailing and gig employees provides immediate relief to drivers, but stressed the necessity for long-term solutions to handle global oil price uncertainties. He proposed a more comprehensive approach be explored, including supporting the gradual transition of the e-hailing sector to electric vehicles (EVs) to cut back the dependence on petrol.
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This Article First Appeared At paultan.org
