Petrol dealers association seeks to close some kiosks during MCO

May 17, 2020

Do any kiosks actually close every time BUMIPEDA threaten to do it?

Dateline 2020-04-17, Malaysian Reserve:

PETROL pump operators are looking to halve the number of stations that are open during the Movement Control Order (MCO) to cut losses as motorists stay home going into the fifth week of travel restrictions.

Petrol pumps are considered essential services and must remain open under instructions from the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP), but dealers are asking that some locations be allowed to stop business until the MCO is revoked because there is no demand at the moment.

Bumiputera Petrol Dealers Association of Malaysia (Bumipeda) president Datuk Abu Samah Bachik said the public can be serviced even if half the number of stations are allowed to shut during the MCO.

Even with the drop in oil prices, the demand for fuel has dried up as only essential travel is allowed since March 18 and will be enforced at least until April 28. Globally, the benchmark Brent crude dropped 5% on Wednesday to US$28 (RM121.80) a barrel, as demand drops to a 25-year low.

Petrol dealers warn of negative impact from floating RON95 price

December 28, 2019

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.