Petrol dealers may lose up to RM40m

February 5, 2019

Dateline 2019-01-05, NST:

PETROL station operators claim they could lose up to RM40 million following the dip in petrol pump prices.

Petroleum Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz said the drop in fuel prices by 14 sen per litre for diesel and 27 sen per litre for RON95 and RON97 petrol would result in RM30 million to RM40 million in petroleum retail losses, based on existing fuel stock.

“All operators will have to bear with it,” he said.

The government had decided to reinstate the Automatic Fuel Pricing mechanism to determine fuel prices on a weekly basis.

Finance Minister Lim Guan Eng confirmed the adoption of the former managed float system while announcing the new petrol rates, which will take effect from today until Jan 11.


RON 95 petrol price will be capped at RM2.20 – LGE

February 3, 2019

Dateline 2019-01-02, Paul Tan:

The new weekly fuel price float system – which was supposed to go live today but is now scheduled to start later this week – will see RON 95 petrol prices capped at RM2.20 per litre, even if crude market price pushes the pump price beyond that level. This was revealed by finance minister Lim Guan Eng, reported by The Star.

Lim said the price float system was different from the previous government’s. “People will be paying less when petrol price drops but when it increases, they need not worry as any increase exceeding RM2.20 will be subsidised by the government,” he told reporters in Bukit Gelugor yesterday.

He explained that the implementation of the weekly price float was delayed because of objections from the Petrol Dealers Association of Malaysia (PDAM), adding that prime minister Tun Dr Mahathir Mohamad would hear the group out first before deciding on the prices, which would be announced after a cabinet meeting today.


Petrol dealers to undergo severe cost-cutting if govt persists with weekly pricing mechanism

January 29, 2019

Dateline 2019-01-29, The Star:

Petrol dealers say they might have no choice but to resort to severe cost-cutting measures to stay afloat if the government persists with its weekly fuel price float, which goes into effect on Jan 1.

Petrol Dealers Association of Malaysia (PDAM) president Datuk Khairul Annuar Abdul Aziz said these would include letting go of employees as the minimum wage had increased to RM1,100, as well as limiting daily operating hours from 24 hours to 18 hours.

 


Govt to maintain float system in fixing fuel prices

January 5, 2018

Dateline 2017-11-11, FMT:

The retail prices of fuel will be maintained on a managed float system based on the world price of crude oil which is currently trading at US$63 per barrel, Second Finance Minister Johari Abdul Ghani says.

He said in 2008, the world crude oil price reached US$140 per barrel and RON 95 then was retailed at RM2.70 per litre compared with RM2.31 per litre now.

“When it comes to a stage where we have to have a discussion, we will discuss it. As for now, we have to remember that it was US$140 per barrel before,” he told reporters at the Kampong Bharu Food and Arts Festival 2017, organised by Kampong Bharu Development Corporation here today.

Johari, who is also Titiwangsa MP, said although the fluctuating price of crude oil was beyond the government’s control, it could still monitor the situation and distribute the 1Malaysia People’s Aid (BR1M) to prevent the lower income group from falling into poverty.

 


Up or down, there’s just no winning for petrol dealers

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.

 


MALAYSIA GONNA START CHANGING PETROL PRICE EVERY WEEK? WON’T THAT SUSAHKAN US MORE?

April 18, 2017

Dateline 2017-03-14, Cilisos:

Just 3 years ago, Malaysia was still a country with petrol subsidies, but that all changed when the gomen decided they weren’t going to pay for those subsidies anymore. Malaysia then moved to a float system, where the prices of petrol locally would be determined monthly by the prices worldwide.

For the longest time, our Editor-In-Chief had been wanting for one of us writers to write about how these monthly petrol prices in Malaysia are calculated. Sadly, it kept getting postponed either because of something more current or we just forgot. In fact, our saudara at SOSCILI ended up writing about it before us.

With the price of petrol and diesel going up in the past 2 months, we thought it would be a good time to translate their article. But as soon as this writer started researching about the topic, we realised that some major changes are coming where petrol prices are concerned.


Retail oil prices: no hidden tax, says johari

September 3, 2016

Dateline 2016-08-04, Borneo Post Online:

The retail prices of petrol and diesel for the month of August are set under the managed float mechanism as promised by the government with no hidden taxes involved, says Second Finance Minister Datuk Johari Abdul Ghani.

He was responding to claims by opposition MP Rafizi Ramli that oil prices are manipulated to enable the government to collect ‘hidden taxes’.

Speaking to reporters at a Hari Raya Aidilfitri function organised by Perbadanan Nasional Bhd here yesterday, Johari said the prices of RON95 and RON97 petrol for August were maintained at RM1.75 and RM2.10 a litre respectively while diesel price was raised by 10 sen to RM1.80 a litre.

Johari said although crude oil prices on the market were quite high in June and July, the government did not raise retail oil prices for the two months out of concern and consideration for the people.