According to The Star, the Petrol Dealers Association of Malaysia (PDAM) have stated that a multitude of fuel dealers around the nation may have to shut down should prices continue to fall due to high losses.

President of PDAM, Datuk Hashim Othman stated that losses of “between RM20,000 and RM100,000” were reported by several dealers. “If the drop was only a few sen, we could absorb the losses but now with the 35 sen drop (for petrol), we’re buying it high and selling it low,” he added.

Datuk Abu Samah Bachik, president of the Petronas Petrol Dealers Association of Malaysia, has stated that solutions are being drawn up between the government as “all dealers in the country are affected. None of us are exempt from this.”

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Due to petrol and diesel being considered as essential items, dealers are required to possess at least three days’ worth of stock. The issue at hand stems from motorists waiting out from refuelling until after the new price is introduced.

“Some (stations) do run out of fuel because people aren’t buying before the end of the month. But when the price goes down, everyone rushes to buy,” adds Hashim. Domestic Trade, Cooperatives and Consu­merism minister Datuk Hasan Malek confirmed that meetings between the dealers and oil companies are on hand.

The drop of 35 sen for both RON 95 and 97 plus a 30 sen drop in diesel has resulted in the new price of RM1.91, RM2.11 and RM1.93 per litre, respectively – the lowest for RON 95 and diesel since May 2013.