What happens to petrol stations when oil prices go down

August 20, 2017

Dateline 2017-07-13, FMT:

Petrol businesses operate at a loss whenever oil prices go down, with some of them forced to shut down as they are unable to cope with the fluctuating prices every week.

The Petrol Dealers Association of Malaysia (PDAM) said since the implementation of the monthly fuel pricing mechanism in December 2014, petrol station operators have found it difficult to finish off their oil stocks.

PDAM president Khairul Annuar said since 2014, between 30 and 40 petrol stations had been forced to cease operations due to their inability to cope with the losses.

“And now there’s a new weekly pricing mechanism. As a result, petrol station operators are feeling the pinch really badly,” he told FMT.

Petroleum Dealers Ask Gov’t To Release Fuel Prices In Advance To Association

August 4, 2017

Dateline 2017-06-21, Malaysian Digest:

The Petroleum Dealers Association of Malaysia (PDAM) is suggesting for the government to release the retail fuel prices to the association, two days before the weekly fuel prices are announced.

Its president Datuk Khairul Annuar said this is to allow petroleum dealers to bargain for a better price of fuel accordingly with the petroleum producers.

“We got this idea from our Moroccan counterparts during a conference with international petroleum dealers yesterday. We hope we can emulate their method.

“We can accept the system where the retail prices of petroleum and diesel is set every Wednesday. But, we hope we can get the information on the price change two days prior, which is on Monday.