It appears a new fuel ceiling price mechanism will be introduced in Malaysia next month. Minister of domestic trade, cooperatives and consumerism (KPDNKK) Datuk Hamzah Zainuddin has officially said that the ceiling price for fuel in the country will be announced weekly starting from April 2017.
It’s understood that under such a system, the government will announce a new weekly ceiling price for fuel instead of the exact retail prices every month as is being done now. Fuel retailers can then decide to either follow the ceiling price, or set them lower. Hamzah said that the ceiling prices will likely be announced on the Monday or Saturday of each week.
A notice highlighting the latest ceiling price will then be placed at all petrol stations nationwide, so consumers will know if it has been raised or lowered. Basically, Malaysian motorists will have to get ready for more frequent fuel price fluctuations – weekly rather than monthly.
“The government is determining the fuel price to avoid it exceeding the correct market price. In reality, what second finance minister Datuk Seri Johari Abdul Ghani and I are doing, is to ensure the people know what had been determined by the Petroleum Dealers Association of Malaysia,” Hamzah told Bernama.
The idea of setting a fuel ceiling price was first announced in February, with Johari suggesting it as a means to tackle the issue of escalating fuel prices. At that point, the price of RON 95 had been raised two months in a row, effectively up 40 sen compared to December 2016 (RM2.30 vs RM1.90 per litre).
It will be up to the government to set a ceiling price, which will be deemed fair to all, according to Johari. “When we (the government) have decided on the ceiling price, whether they (oil and gas industry players) want to sell the oil at lower prices for promotional purposes, we leave it to them,” he said.
The Petroleum Dealers Association of Malaysia has long suggested a move to weekly price updates for fuel, going back as far as December 2015. Back then, it was said that the current monthly system could cause them (fuel retailers) to incur heavy losses, and that weekly price updates (of smaller fluctuations) would not be “too noticeable” for motorists.
Well folks, what do you think of this new revelation? Will we see a price war between fuel retailers in Malaysia? Like it, or against it, let your thoughts be heard below.
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so that why under construction petronas on sg besi highway constructed with price display tower.. that know in advance already
They have known for months already…see my comment here https://paultan.org/2016/12/31/january-2017-fuel-prices-petrol-diesel-all-up-20-sen/
So much for being an oil producing country. You think they will compete? More likely they will all form a cartel to keep prices near the ceiling.
I don’t know why people here are so happy thinking there will be competition of prices. Hello, it will be like car prices from different brands. All will be pakat pakat and fixed. You think car companies are competing but all of them pakat pakat and keep prices high. After all, all car companies are all one Gomen owned. You get fooled thinking Honda gives you a better deal than Toyota but in truth, both companies are GLC.
The same with this ceiling nonsense. Nothing will happen. All prices will remain same because PDAM are the No 1 crooks. These are the same people that in 2015 wanted the Government to compensate them whenever fuel prices went lower. And the best part, each station, whether prices go up or down, earns millions per month.
And even better, instead of the ruing one owner and one station policy, there are owners who actually own up to 15 stations each.
During good times when fuel price goes up, they make tens of millions of ringgit every month. When fuel goes down in price, they want the Government to compensate them.
Do you think this PDAM will give you healthy competition? They are just another crony like the AP cronies. It is all grab grab grab. We consumers will get ZERO
With AP system to burden the rakyat, where is the competition come from…??? this is making more pain, look at Toyota VIOS facelift & Honda CITY facelift, after new EEV incentive (already tax/duty break & price should align to reduce) but the car price remain UNCHANGED –> actually meaning car price not reduce but increased. MAI MAA Ministry where is the promise of 30% car price reduction, how come not reduce but increase…???
Vios n city is made in bolehland do not need AP.. u know what AP is?
So from where you know that each station make Millions per month?
In case you didn’t know, Malaysia produces one of those most expensive crude oils in the world (low sulfur Tapis crude). It makes absolute business sense to sell the crude out than to consume it locally.
Even MCA has urged government to disclose fuel price formula in Feb’17
does this mean they are bunch of keyboard warrior ??
LOL..
Excellent idea…brilliant…let motorists choose the best price…
Lower prices? Competition? Two words: Election coming.
This should have been the correct implementation of a float system in the first place
as i know..the government/authority hasn’t disclose petrol price calculation to public.
we won’t know how much is the correct amount for ceiling price. If govt say ceiling price is RM4, RM5 or even higher..
just my 2cents
Malaysians should be asking for lower petrol prices instead of this nonsense. At current prices, we are overpaying the Government by at least 90 sen per litre. If a single person pours full tank at 40 litres, he is overpaying RM36 each time he fills up. Calculate that with say 6 times per month, each person pays about RM220 extra per month.
Calculate that with 10 million motorist. That works out to tens of billions extra income for the Government.
Where does all this money go?
How do you get 90sen per litre?
Yes they have disclosed, do yourself a favour and google Automatic Pricing Mechanism 1983. It is disclosed very explicitly and is an act endorsed in parliament in 1983. If you can’t find it online in pdf, you can always pick up a copy at academic bookstores i.e. Minerva, Popular etc. Be a learned Malaysian, don’t be a keyboard warrior.
Even MCA has urged government to disclose fuel price formula in Feb’17
does this mean they are bunch of keyboard warrior ??
Let there be war then…..
Not what ive been having in mind.
I hope that they set up a max price and cover the exessive price increase with a subsidy.
With the current crude price trend, Gov will make alot of money from… let say… Rm2.50 per litre?
Paklah sold for rm2. 70 max and malaysia was rich, and the crude price was alot better compared to now.
Haizz, i dunno if i make any sense here.
Any form of open competition is always beneficial to consumers. Full support
Ya la tu. Untill they set the ceiling price for rm4/l and all station sell it for rm 3.90/l
Not 3.90/l but 3.99/l!
“Will we see a price war between fuel retailers in Malaysia?”
Sounds good for Malaysian consumer. Same happening in telecommunication networks. But it still have pros & cons.
How much the ceiling price will be on April? RM3/l?
Its as good as everyone follow the ceilling price since non of the petrol operators will want to loose out. This kind of system is only workable if every operator is free to import their goods from any source worldwide to sell at the best price. Since petrol supply is controlled by the government it’s like telling us you can have any color we want as long as its shades of black.
This is good. I support the idea
Whatever savings the Government get from removing fuel subsidy is not felt by the laymen.
So whatever fuel price system we have in place is just smokescreen.
Undi Ubah.
We want weekly preferable every Thursday price updates fuel
I can see that in near future, each station will have a large display for ron95, ron97 prices that can be seen from further distance. Just like in UK. And there will be websites that shows fuel prices through the use of Google Map. Good. But govt need to make sure the people in rural areas will not suffer.
If only their prices lower. If higher, they will keep smaller, only know when paying.
Make no difference. Running by cartels, the price won’t be much of a difference.
Ceiling cap is stupid, since suppliers can gip 1001 excuses to max price just like food suppliers here. Since we r on the way to remove subsidies, we shud just go cold turkey all the way.
Otherwise, this will just prolong the reliance on subsidies which cant go on for long. Price gouge monitoring & increasing BRIM on the other hand…
Correct. The Gomen is just interfering in the market forces of supply and demand.
Government encourages competition e.g. establishment of MyCC, they interfere when they need and want to protect every each rakyats’ interests not certain rakyats only. Hava a nice day
Oh.. terima kasih Malaysia!
Ron95 make it RM1.50 max lah adoi. u susah i susah we all susah, what for?
Good.. I remember back in Y2000, Shell gave 3sen discount per liter, but was force by TDM gomen to stop doing it after a month. At least now, the petrol company can compete with each other, hopefully can have price war? But knowing Malaysian companies mentality, they would probably maximise the price to the ceiling instead.
Theres no such things as price war when all of them agree to max ceiling the price
No matter what the ceiling price will still skyrocket. Just that by weekly update it will be less noticeable and consumers will get tired of grumbling about the fuel ⛽ price every week. The worst part is the price of the goods will skyrocket as well but when the fuel ⛽ price is reduced, the goods price is still stagnant.
Rather take Pak Lah approach, let the price high but give compensation then smuggling of Petrol ⛽ and diesel surely decreased. For instance, RM5 for ron97. Give a Malaysian holding a valid driving license…
war again old gov, new gov give ceiling price RM1.50 only
The problem is until TODAY, nobody knows what is the formula and calculation to determine the petrol retail ceiling price. The government promised to publish but did they??
Whether monthly or weekly price being adjusted, there is a barrier of this “Ceiling Price” that in a form still govern and manipulated.
THIS IS JUST A GAME……
this mechanism has long been practice in uk/europe.. its about time for malaysia too…now the mamak cannot simply increase the price of teh tarik anymore haha
then we are screwed.
the fuel price will skyrocket as soon as this system is implemented…
This is like in America. Each gas pump can set their own price
Yes like America BUT Rakyat income tooooo far away. Even our menteri mentality more far away. All they know to keep their Perut buncit & buncit….. Cis
Haiyaaaa……mampuihhh lakyat loooo
Fluctuate every week? That’s what you call ceiling? WTF GOV!!!
Banyak pattern nampak… mesti adr udang/lembu disebalik batu
Example, ceiling price of government is RM2.30/litre/RON97 and the retailers charge on average RM2.20/litre/RON97. We are happy because it is less than the ceiling price like buying Kancil for slightly less MB price
Actually we should take the leap of faith to go mass EV. ICE tech is already more than 200 years old. Instead of news of oil price hitting the paper everyday, we should be reading what are the next over the cloud upgrades to our EVs. That is what real civilisation should be about, advancing and not stagnating and keep hopping on the same issues over and over again.
untung la ore ganu.. dkt dgn kilang mesti lg murah.
OPEC ideally prefers MYR5/L
At last…. like US and other countries.. now the petrol pump companies/owners need to compete… i like.. hahaaa
Ha…Ha..Ha…
Are you serious that they will really Compete with Each Other ?
High Connection links these Companies. Unless Petronas ……. ??????
Ha…Haa…… Ha…..
Petrol Companies to Compete ???
It’s nice to have competition and the consumer will be the winner but not for retailer as they no longer has the right to get stable profit from petrol/gasoline. However this is not the main problem as if they can provide better/added service, i’m sure loyal customer will sure went back to their outlet even though the price is high but reasonable.
the govt wants to remove the subsidy..so ceiling price means no subsidy. no subsidy = so price goes up. just like singapore and Thailand.
But they are cartel.
They will just sell at highest ceiling price. ALL of them together.
why would any of them want a status quo when this is the chance for some of them undercut to get a bigger piece of the pie…
Gives licenses for independent operators, different is they do not have an additive in their fuel and thus cheaper. Good for non-high end cars & second hands one. Their station normally simpler no thrill concept (even use second-hand pumps & no toilet) to keep the prices low to compete branded one. That’s how fuel price is kept in check in Australia. Open the license only to local players such as “koperasi-koperasi” or KWSP or TH where the profit is shared among the “Malaysian” members.
If oil companies set the price, it’s good. But if pump retailers set the price, then there will be a problem. Especially in the rural areas, if there is no other petrol pump nearby, of course they will sell at ceiling price.
If you want to see the real retail pump prices, you need to change the goman. Period.
we should have increased salary to cope with rising prices.
wow weekly announce price…
so instead of 1 month increase 20sen, now possible weekly increase 20sen…bravo…nice tactic
My opinion is that perodua and proton should produce hybrid or EV vehicles belom RM70K. Buyers have the option to switch to these vehicles rather than spending quite a bit on fuel. Just my opinion…
In my opinion, the weekly announced is bad idea. as we know in Malaysia, every time fuel up. Groceries, transportation and foods will take advantage to increase price. than everything goes up, which is a chain reaction. the worse part anything goes up will never come down even when fuel price is down.
So I’m seeing where this is going, soon where will be app(s) to locate the cheapest price in certain km radius.
And everybody will go there and line up until out of stock and then curse in facebook. Meanwhile those more expensive stations will just flapping house flies and complain in newspaper no customers and end up each station could only serve up to N customers per day.
Weekly fixed prices please….
to avoid congestion at certain stations….
Imagine further traffic jams caused by this, our petrol statiol locations are built by logistical criteria, 60km radius of sortz meaning,
Anyway, when aussie implemented dis, few thousands petrol station closed,
When the big companies undercuts small timer, itll eliminate competition, then they cn fix d prices, and then compromise on quality
examples like uber eliminating taxis
Airbnb disruptinf rental markets
wallmart closes down small shops
sometimes bowing down to capitalism incessantly without a thorough rethink is not the way….
I think the govt using the same method of pricing as the US and UK..I always saw fuel prices per litre/gallon in western movies/drama..Am i right?
Simple calculation , until today still can’t manage.This how the country manage by hanky panky.