May 20, 2020
Dateline 2020-04-18, FMT:
The country’s largest organisation of petrol station owners has warned of the likelihood of pumps running dry after the movement control order (MCO) expires unless the government temporarily stops the practice of setting weekly prices.
Many of the station owners would not have the funds to buy enough petrol and diesel to cater to the expected increase in demand, Petrol Dealers Association Malaysia (PDAM) president Khairul Annuar Abdul Aziz told FMT.
He said the drop in fuel prices and a 70% reduction in sales since the MCO had badly affected petrol dealers.
May 10, 2020
Out of curiosity, did any stations shutdown the last time PDAM made a statement?
Dateline 2020-03-26, FMT:
The country’s main association for petrol dealers says it fears the bulk of some 3,800 stations nationwide will have to suspend operations due to financial issues related to the “double whammy” of consecutive drops in fuel prices and the loss of traffic due to the government’s movement control order (MCO).
Petrol Dealers Association Malaysia president Khairul Annuar Abdul Aziz told FMT the sale of fuel products is down by 70%.
On average, he said, a station needs a working capital of RM150,000 to RM200,00 a month to buy fuel.
Operating costs, including utilities and staff wages, are around RM30,000 to RM70,000 depending on the size of the station.
May 27, 2019
Dateline 2019-04-11, Malaysian Reserve:
PETROL dealers associations applaud the government’s proposal to deposit fuel subsidy directly into recipients’ accounts as it is a win-win solution for all.
The dealers said the direct debit method to recipients’ bank accounts would save the government and petrol station operators from having to incur transaction costs, while promoting a systematic and seamless disbursement of funds.
Petrol Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz told The Malaysian Reserve (TMR) that the mechanism, should it be implemented, would allay concerns of additional cost, backlog and congestion issues among users and dealers at the petrol stations.
October 11, 2017
How is that? Are the house odds stacked against the playa?
Dateline 2017-08-30, FMT:
Although petrol dealers hardly get any sympathy on social media when they complain about their losses, they are very much in a losing situation.
Speaking to FMT, Petrol Dealers Association of Malaysia (PDAM) president Khairul Annuar Abdul Aziz said this was because the profit margin for dealers set by the government through the automatic pricing mechanism hasn’t been reviewed since 2008.
Presently, the profit margin is set at 12.19 sen per litre for petrol and 7 sen per litre for diesel, but operating costs have doubled since then due to the implementation of minimum wages and increases in electricity tariffs.
Additionally, Khairul said petrol dealers absorb a 1% service charge imposed on customers who pay using credit or debit cards.
“So when fuel prices increase, our operating expenses decrease because we are buying the petrol low and selling high, but we are forking out more for the service charge on card payments because the value of that 1% increases.