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@liztai@hachyderm.io

Post #2313090

2026-05-05 13:21 UTC

@chu@climatejustice.social we have a very robust data system. We are a lot like China in many ways. I am no oil expert but I will try to explain (with the help of some research with Gemini): In Malaysia, the subsidized price isn't a discount Shell or Petronas generously gives me and then claims back to get ahead. It’s actually the opposite: The government sets a price ceiling.* Retailers are legally required to sell RON95 at RM1.99 per litre period. (Price is changing due to the war tho.) If the global market price is RM4.00, but the law says they can only charge me RM1.99, the oil company is effectively operating at a massive loss the moment the fuel leaves the nozzle. The government then compensates them for that specific gap. This isn't a 'corporate subsidy' designed to pad their profits—it’s a reimbursement for a loss they were forced to take to meet a social policy. Under our Automatic Pricing Mechanism (APM), the retailer and the oil company make the exact same fixed margin (a few cents per litre) they would on unsubsidized fuel. They don't make an extra penny when the subsidy is higher. They are just the middleman; I am the beneficiary. And even then, we have strict rules to stop businesses from 'double-dipping' or stealing that subsidy. You might think, 'Well, a business could just fill its company vans at the subsidized pump and save thousands.' But we already identified that loophole and made it a federal crime. The BUDI95 system requires every individual to register with their MyKad (National ID). Your subsidized quota—currently 200 litres a month—is tied to you, not the vehicle. It is explicitly illegal for a company to force employees to use their personal subsidized quota for a company vehicle. As for big logistics and transport? They don't use the consumer pump price at all. They have a totally different Fleet Card system (SKDS 2.0) with different pricing and strict digital quotas. If a corporation tries to game the system, they face millions in fines under the Control of Supplies Act. So, the system is designed where Individuals get the help, and corporations pay the market rate. The Ministry uses real-time data monitoring at petrol stations to flag any "unusual" MyKad patterns that look like commercial activity.

Replies (2)

  • @liztai@hachyderm.io 2026-05-05 13:23

    @chu@climatejustice.social personally I want the govt to stop giving subsidies so they dont have to spend so much, and actually create a less oil dependent system. Oil does make Malaysians lazier and car dependent, but there are also harsh economic realities that cannot be denied.

    Open ##2313091

  • @chu@climatejustice.social 2026-05-05 13:24

    @liztai@hachyderm.io I would have to think through some of that but it seems much better than our model. I didn't realize you have surveillance level purchasing like China. That is also a scary future in many ways.

    Open ##2313095