By now Malaysian motorists would be used to expecting fuel price revisions at the start of every month, under the current managed float system first introduced a year ago. If the Malaysian Petrol Dealers Association gets its way, however, revisions would be done weekly instead of monthly.
The association has urged the Malaysian government to revise fuel prices on a weekly basis, as the current monthly system could cause them to incur heavy losses. As it is, the system has severely affected the volume of fuel supply to petrol dealers, the association has complained to Deputy Finance Minister Datuk Johari Abdul Ghani.
“A lot of oil companies now use this opportunity by sending the petrol dealers oil supplies in large volume at the end of each month if they expect the price to fall the following month,” he said today.
“If the fuel is expected to increase in the next month, they will then reduce the supply,” the Deputy Finance Minister further explained, according to The Star.
Johari went on to claim that if the matter is not managed properly, more than 3,200 petrol dealers would be open of losses of up to 70%. In essence, the current system allows oil companies to adjust the supply distribution to their benefit (based on forecasts of oil prices), which may compromise the petrol dealers.
To solve this issue, the Petrol Dealers Association has suggested that fuel prices be revised every week, with a maximum price difference of 5 sen, so that the price change would not be “too noticeable” for motorists.
“This will benefit the consumers, the petrol dealers and the oil companies regardless of what the market price is,” Johari concluded.
What do you think of this, folks – would you be open to weekly fuel price revisions? Let your thoughts be heard below.
Looking to sell your car? Sell it with Carro.
What do you mean what do we think?
No matter what they decide on, we will always be the victims of exorbitant fuel prices.
When subsidy removed from RON97
In Aug-2010, USD-to-MYR: 3.18; crude oil at $83.30)
Price was RM2.10 per liter
Now Dec-2015, USD-to-MYR: 4.30; crude oil at $38.00)
Suppose price is also RM2.10 per liter
Why BN charging at RM2.45 ???
BN and cronies “excuses” blame on weak currency against dollars.
OMG…last time update monthly also complaint …now say weekly…Hahaha…
I think he is talking absolute sense. I would go further and say that a daily price revision with price differences in cents is even better. It is the scenario happening in Thailand, UK, USA and I believe it is working just fine.
Now that fuel is not subsidized, the one-million question is, where the heck is the promised cheaper car prices?
You have to w8 till the car prices increased by 30% before they drop 30% for cheaper cars.
Same like train service, increased by 50% then introduced 50% for students, then the supporters be like hidup jibjib.
“This will benefit the consumers, the petrol dealers and the oil companies regardless of what the market price is,” Johari concluded.
What benefit to consumer? NONE.. They are having internal fight and thought bringing consumer into picture will make them so noble.
every week!?
up to them la..
better back to gov pay subsidy la. win win ma.
many years ago no body loss money.
Champion to bring down the 3 taxes (Excise duty, sales tax, import duty) for our cars then talk la.
Think of the consumers also la…
Don’t just always jaga kepentingan sendiri
I think he’s complaining because they didn’t have to chance to enjoy the sudden hike when price is announced. If they are receiving when a hike is announced, I don’t think he will say the same.
Just open up the market, government cannot control prices. If gov tries to, they will create inflation or unnecessary wastage. Let the private sector determine the price.
Those that believe gov should set the price for goods and regulate price should look at Communist China before they open up and North Korea. Prices are low, but there is nothing too buy.
Let capitalism works itself. Let the fremarket determine, the gov job is to monitor and stop monopoly.
In retrospect lah, the petrol station owners should’ve saved up when the tide was on their side.
Johari, do bisnes like this always. One day lose one day gain. Cannot all day win. For the past 11 years PDAM been gaining much without even care about whether company send much or less petrol
Pdam should advise all members on how to cope with petrol price going down. People know pdam members got to pay cuts also but they got to be working on ways to have passive incomes to cover for others
And one more thing johari wheres the petrol pricing mechanism?
Running a business == RISK. Can’t take risk, do something else.
So many businesses envy these petrol sellers. Price up/down, people still have to buy. Demand guaranteed there, whereas other businesses have to work crazy hard to create/sustain demand for their products/services.
With this ultra handicap, to still cannot make profit is really topkek surpass Maslan level.
most likely price increase will b revised weekly, price reduce will b monthly.
mase kaut untung berlipat lipat kali ganda dulu diam aje macam tikus.. ni baru rugi sket dah melatah.
puii la!!
oil companies can send fuel to their dealers suka2 wan meh? I tot dealers order then oil co send??? no?
not yet finished also send? leave tanker there until they finish?
unfortunately no.
My thought as well. Why not gov go after those oil companies? This is like ‘simpan beras to increase price’ scandal.
Weekly prices will actually be a good thing,
Daily prices will be even better, force all petrol station to display their prices daily,
then consumer can decide where to go for cheaper fuel
Before they play up n down 20 cent n 10 cent. Now every week, they will do this.. Nasi lemak managed country alwiz like this…
hahahaha, for consumers’ sake????
I think the proposal is more suited for their self-gain and benefits of the Association and their goons.
heck, even the BN govt screws the rakyat everyday, everytime and everywhere…..even with their “…..Rakyat diutamakan” slogan.
New year coming oredi, so the association need to have more untung than 2015 kah??
Well, just review it every second like live show lahhhhh.. Happy??
Its always about Bumi agenda. Bumi here and Bumi there… This ks how incompetent Bumi run a business. When they making huge money, keep quiet n exploit consumers. When make few losses alrdy meroyan tak tentu hala. So do we consumers have rights to gegar ur office just because we arent satisfied with the way you do business. These Bumis are being pampered.
If memory serves me correctly, there’s a time like 10 – 15 years ago that there’s a price wars between petrol stations
Just let ’em have it, at least during times when oil prices are plunging by the minutes
Price war? 25 years ago… Refill rm20, free 1 McDonald burger. If not mistaken offer by Esso.
The war include caltex and shell as well.
revise weekly? sure ka?
if i not mistaken world oil price keep tumbling…u wana make more loss? ^^
doesnt matter monthly or weekly or daily…but putting a limit to the increase or decrease at 5 sen is not right…follow market price la….
revise everyday la. and dont standardize the price. have a good competition among urself. after 1-2 months beg the gov to hav standard price.
Well we’re still paying top dollar for fuel despite the crude oil price being at rock bottom now. So where’s the logic in that?
if price is opened to market, those in remote n kampong areas gonna suffer
Tak kesah, asalkan orang kite, mesti protex protex maruah!
No doubt that there is impact but most of the rural or semi-rural folks actually use less fuel than urbanites.
A 5km drive is already out of town. In the urban area, 5km but you are still within the housing area or township.
One tank of fuel can last 3 days or so in urban areas wheras in rural or semi-rural areas, it can last at least 3 times longer.
The current way of managing the fuel price is shambolic. If there is a increase in price , the govt announce it early causing consumers to queue at the pumps the night before.
If there is a drop in price announced, consumers will just wait out if possible.
I would say let the market decide the prices. Let the price float and change weekly/daily as in UK, we choose whichever pump that we want. This increases competition and improve services.
For a start, de-nationalise the price of fuel by letting the oil companies decide on their own prices daily/weekly. So each brand will have their own price guidance.
At the same time, allow the individual stations to fine-tune the price by X sen, maybe 5 sen either way? If stations can compete locally, everyone will benefit.
Berniaga ada untung dan rugi. Tapi rasanya jual minyak ni samada untung sikit atau untung banyak terutama stesen pam kat lebuhraya lagila biasanya orang isi penuh je. Time untung banyak semua diam je. Bila untung sikit potpet. Tak nak rugi langsung maka JANGAN BERNIAGA.
This is a B2B issue unless, as usual, the true intention is to push the cost to the customer.
the one major problem is, they haven’t reveal how do they calculate fuel price…
seems like we are subsidizing government now base on the world crude oil price..
Back during the 80’s all the way to around 2004 or so ( can’t really remember when the oil company started forcing the dealers to stop ordering fuel loads by themselves ), it was done by the dealer themselves. But since oil companies started forcing dealers to stop ordering and forced to receive fuel loads, it has affected the cash flow of the dealers. Now since the current managed fuel price float mechanism started, oil companies just simply dump their stock to dealers so that the oil companies can lessen the impact of cheaper prices, sadly this directly affected their own dealers. When the oil companies started forcing dealers to stop ordering by themselves and forced the dealers to accept any amount of fuel loads, only the dealers who managed their cash flow properly survived. During 2004-2010, those who couldn’t manage their cash flows, had to close shop. So the comment saying the dealers should have saved up in the previous years is wrong, as the current dealers still around today, are the ones who managed their cash flow properly ( the dealers who’ve been in the business 10 years and over ). The comment about dealers making a huge profit every time price goes up is wrong too. Mind you, the very next day, dealers have to purchase / pay their loads with the new higher price, and these “magical overnight profit” is gone in a matter of days. PDAM advise their members on how to cope with prices going down? When at the same time the oil co’s are forcing the dealers, for example, must have a minimum amount of staffs on the forecourt ( eh, I thought Malaysia already enforced self – service years ago? ), dealers must do their own promotions etc. Do not forget GST too hehe.
I wouldnt say your calculation is wrong but every business is the same.
You buy RM1, sell next day for RM1.10
Then you buy again at RM1.10 and then you sell for RM1.20
How can you not earn when your RM1 already become RM1.20??
Unless you say you buy at RM1.10 and sell back at RM1.10 until all these stock ran out.
Of course when price drop then suffer la. Already earn so many years now wanna complain price drop? From those day where you get attendance to help pump, and to now DIY. Still no earn? Then better shut down and let someone else do lor.
Hold on….majority of the petrol business own by malays. So now they want tongkat even after so many years? The way they do business really no fight compare to chinese. Don’t feel harsh for being blunt. But that’s the reality. NEP policy? Lowyat2? AP? My assss!!!
Losses?!?! You wanna talk about losses ?!?!?! The fuel that we are all pumping now are not losses to you. With such low global oil price yet we are refueling at a (very) controlled (high) price, you still wanna talk about HUGE losses ??? Why don’t you do something else if you can’t stand incurring some losses. Business is like that. You can’t always earn huge. There are times you lose there are times you earn. I am a business owner myself and I know very well about losses. Inflation? GST? Taxes left right up down front back and center. Those are already huge losses and BURDEN for Malaysians. Pfffffft !
Since they want to completely remove subsidy just make a daily affair. This way the gov can’t get away with lower prices like they usually do. Petrol goes up, the next day implement. But when petrol goes down takes a week or two to take effect! This whole year the consumers have been suffering because everytime petrol goes up, the bloodthirsty traders and wholesalers will also increase their product prices. But when petrol goes down these same rascals don’t lower their prices. Its a lose lose situation with the rakyat. And I haven’t even started on GST yet…
I think it better on weekly basis.. Or.. Daily basis.. Or even good.. Hourly basis
When u get huge profit.. U just silent.. But when got loses.. Keep on shouting
As Rafizi said & explained before the inplementaion.
Monthly manage price system cause dealer losing money. Government should take action on oil company for early delivery when price go down and late delivery when price go up. If not, subsidy the petrol like previous time, everyone gain, no question. Weekly pricing is unfair to consumer as the price is low now, the petrol price has more chances to increase and less room for decrease. Weekly pricing will increase the price faster by 4 times monthly instead only once monthly. We rakyat is not stupid, please do not use this to trick the rakyat.
bloody hell, why the heck RON97 price is still freaking high