Dateline 2015-12-24, FMT:
The Petrol Dealers Association of Malaysia has suggested to the Finance Ministry to revise oil prices weekly according to the retail price.
Deputy Finance Minister Johari Abdul Ghani in a statement today said that the association had met with him recently and voiced their concerns on the current managed “float system.”
Under this system, oil companies send large quantities of petrol to operators if they predict that retail oil prices will drop in the following month, and vice versa.
“Oil companies are taking advantage of this system. If the proposed system is implemented, price hikes would not be too significant for both operators and customers,” he said.
He added that if current issues were not addressed, it could cause more than 3,200 fuel station operators – 70 per cent of whom are Bumiputera entrepreneurs, to suffer losses.