Petrol dealers warn of negative impact from floating RON95 price

Dateline 2019-10-14, Malaysian Reserve:

PETROL dealers worry that the government’s decision to float the retail price of RON95 starting next year under the weekly pricing mechanism will force operators to incur losses.

Fuel pumps operators said their losses would widen especially when global oil prices rise.

Bumiputera Petrol Dealers Association of Malaysia (Bumipeda) president Datuk Abu Samah Bachik said a weekly float system would have adverse effects on the dealers because they would not be able to plan in advance the amount of fuel stock needed.

He urged the government to not rush into the implementation of the system because many sectors will be affected.

“We (the traders) will buy one week stock of fuel. But if the float system is implemented weekly, we might have to sell fuel for a much lower price compared to when it was purchased because of the drop in prices,” he told The Malaysian Reserve.

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