Weekly petrol price would give consumers better grasp of retail trend, reduce drastic changes – Johari

Weekly petrol price would give consumers better grasp of retail trend, reduce drastic changes – Johari

We’re slightly over two weeks away from April 2017, when retail pump prices will no longer be set by the government, as is the case now. The free float will be capped by a weekly ceiling price for petrol and diesel set by the authorities, but oil companies are free to sell fuel at any price below the ceiling figure.

Such a system will give consumers a better grasp of the retail trend compared with the current monthly change of price. It will also help avoid drastic changes in fuel price due to the shorter period of calculation and any change will be gradual, second finance minister Datuk Seri Johari Abdul Ghani said, reported by Bernama.

“If we wait a month, sometimes it (petrol and diesel prices) can see a sudden rise of up to 25 sen. When it rises so much, it is hard to make any adjustment and the government is forced to absorb part of it as subsidy,” he told reporters today, reiterating that although the government sets the ceiling price, it will be up to the oil companies to sell at a lower price.

Will we see a price war as competition between brands heat up? The Petrol Dealers Association of Malaysia (PDAM) was initially against weekly fuel price revisions, saying that it could possibly result in smaller players closing shop, leading to a monopoly that will not benefit consumers. A few days later, PDAM made a U-turn and is now going with the flow.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Kunta sister and perempuan talk on Mar 16, 2017 at 6:30 pm

    Next time can nego price at petrol station

    Like or Dislike: Thumb up 19 Thumb down 3
    • Albert on Mar 17, 2017 at 1:06 am

      Competing retail prices will ensure the pump operator
      put in a more hands on approach,rather than depend too much on the banglas.
      Now,these cry baby PDAM operators cant afford too much urut urut and play golf most of the time.Sometimes they dont know the Banglas r siphoning ice cream and petrol.
      They have to be vigilant on what the 2-3km operators r offering.
      Those who still complain and cry,pls give up yr licence.Hundreds of competent operators r on the waiting list.

      Like or Dislike: Thumb up 9 Thumb down 3
      • Ah Kow on Mar 17, 2017 at 8:01 am

        I will be expecting a local app to give LIVE PETROL PRICE UPDATES for each company is offering. :)

        Like or Dislike: Thumb up 31 Thumb down 0
        • Mikey on Mar 17, 2017 at 2:28 pm

          I betcha some petrol station will be employing girls just 2 get sales. That way, guys will be looking at girls instead of price & Bangalas will be out of job. He he he.

          Like or Dislike: Thumb up 1 Thumb down 2
          • Ah Kow on Mar 17, 2017 at 3:53 pm

            Free gifts will be more possible.
            Tissue ke
            Umbrella ke
            Mineral water ke
            Tengok la haha

            Like or Dislike: Thumb up 2 Thumb down 1
        • Kunta Kinte on Mar 17, 2017 at 7:19 pm

          When oil was USD103 – it was RM2.70

          Now oil is US45 – it is RM2.30

          What happens when oil go to US$100 again?

          It will be RM5 per litre. Then we can all say “syukur”

          Like or Dislike: Thumb up 5 Thumb down 0
    • Burong on Mar 17, 2017 at 8:53 am

      In the past, Government used to say our car price is high but fuel price is cheap, so it balance up.

      Government impost high duty tax for car, doesn’t use the income to subsidy on the fuel price, and throw the ball back to the owner of petrol station.

      Actual world, Malaysia produce fuel, earn from it and doesn’t contribute it back to the rakyat. Now they impost high duty on car, doesn’t subsidy the fuel, all is just to cover the big hole they have dig in the past with all those scandal.

      Like or Dislike: Thumb up 35 Thumb down 3
      • Fuel subsidies provide more incentive to the rich than the poor and benefits everyone, including the foreigners. Public subsidies could be used to finance education, health, transportation, civil sector and the vulnerable segments of the population, B40.

        Like or Dislike: Thumb up 12 Thumb down 5
      • Mikey on Mar 17, 2017 at 2:36 pm

        U are right. We have been KELENTONG for too long.

        Like or Dislike: Thumb up 3 Thumb down 1
  • ahmad on Mar 16, 2017 at 7:05 pm

    dont give excuse la (it could possibly result in smaller players closing shop, leading to a monopoly that will not benefit consumers). what i see most dealers are rich enough.

    Like or Dislike: Thumb up 11 Thumb down 2
  • Yeast Lump on Mar 16, 2017 at 7:41 pm

    ok got the message. every week rise price 6.5sen total one month rise 25sen. LOL

    Like or Dislike: Thumb up 21 Thumb down 1
  • KenJi on Mar 16, 2017 at 8:19 pm

    Gomen x mau tetapkn harga runcit tp akan tetapkn harga siling. Jadi boleh encik menteri terangkn mcm mana harga siling tu ditetapkn?

    Like or Dislike: Thumb up 11 Thumb down 1
  • Kunta Kinte on Mar 16, 2017 at 8:42 pm

    Petrol price is consider cheap here in Malaysia. Go to our neighbouring countries I.e. Thailand and Singapore and you will know. That’s the reason you see them smuggling petrol in their modified cars back into their countries.

    Like or Dislike: Thumb up 3 Thumb down 23
  • weekly price review is fine….
    As long as it is fixed, and a ceiling is not set…
    Knowing malaysians, lets avoid unnecessary unpredictable traffic jams nationwide…

    Like or Dislike: Thumb up 0 Thumb down 0
  • Concerned Consumer on Mar 16, 2017 at 9:36 pm

    All wayang… whatever they said and do, the sure thing is, its the people who will get screw.. one way or the other.

    Like or Dislike: Thumb up 7 Thumb down 1
  • Orang Minyak on Mar 16, 2017 at 10:22 pm

    Oil companies had planned to avoid closure of their network; Example of convenience store – Mesra, Select etc, their price are higher compare to other groceries shop, to cover any petrol losses.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Middle Age Driver (Member) on Mar 16, 2017 at 10:29 pm

    No dealer will want to loose money…all will price close to the cap price. There wont be a price war as its not logical & significant enough for consumers to drive further away as the cost of getting there far outweight the savings.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Rakyat Malaysia on Mar 17, 2017 at 12:50 am

    Initiatif yg baik. Pastinya harga di kawasan bandar akan lebih hampir dengan harga siling. Bagi kawasan luar bandar, atau kawasan yang kurang trafiknya, pasti akan mengambil peluang untuk menurunkan harga 1-2 sen dari harga kawasan bandar. Namun, harga siling dari pihak kerajaan juga haruslah bersesuaian dan mengikut harga pasaran sebenar dan bukannya mengambil kesempatan dan untung atas angin.

    Like or Dislike: Thumb up 7 Thumb down 4
  • The ceiling is rubbish. Price can go high as it want. If today oil price 50/barrel, later go up 100/barrel, the so called “ceiling” will follow. We will pay double.
    Read the SECOND HAND menteri said

    “”Datuk Seri Johari Abdul Ghani said,
    “If we wait a month, sometimes it (petrol and diesel prices) can see a sudden rise of up to 25 sen. When it rises so much, it is hard to make any adjustment and the government is forced to absorb part of it as subsidy,”

    He use the word, FORCE. Now all will force to us to pay. With GST & all other subsidies taken, they keep enjoying the PERKS while buat PEKAK. We’re suffering and continue struggling.

    Like or Dislike: Thumb up 14 Thumb down 1
  • The outskirt would be maximum in price rather than the city petrol station due to the less or lack of competitor and few others reason such as low volume and overhead cost that keep increasing every years. Btw just wondering if the govt still take into consideration the APM (Automatic Price Mechanism) while deciding the ceiling price? Its because the oil cos, transporter and dealer profit margin should be there in the future when the G declare the ceiling price every weeks.

    Like or Dislike: Thumb up 2 Thumb down 1
  • more chance for gomen to korek more ^^

    Like or Dislike: Thumb up 6 Thumb down 1
  • Neutral on Mar 17, 2017 at 9:07 am

    Our government has never up to any good as far as policies of burdening the rakyat are concerned. So, brace ourselves to weekly increments of 5 sen. It would definitely be the norm and according our moronic minister, 5 sen seminggu sahaja, tak rasa pun.

    Like or Dislike: Thumb up 2 Thumb down 0
  • arowana on Mar 17, 2017 at 10:07 am

    i expect a u-turn decision by the gov at the end of this month…

    Like or Dislike: Thumb up 0 Thumb down 0
  • C. P. MOHAN on Mar 17, 2017 at 10:18 am

    If there is a reference for oil/fuel prices, what is the ceiling price? I presume the reference price refers to sales price not cost price which the ceiling price is thus there is potential to push inefficiency to the public through high/inefficiency in quoting ceiling prices.

    Like or Dislike: Thumb up 0 Thumb down 0
  • panjang on Mar 17, 2017 at 12:54 pm

    How about our roadtax structure?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Not Toyota Fan on Mar 17, 2017 at 1:06 pm

    Open competition is good. Monopoly only benefits that one party, consumers like you and me loses out. PDAM was acting like taxi drivers afraid of progress & technology. Time will tell is PDAM will become dinosaur.

    Like or Dislike: Thumb up 1 Thumb down 0
  • allan on Mar 17, 2017 at 4:33 pm

    macam bodoh

    Like or Dislike: Thumb up 0 Thumb down 0
  • Is this a way to make me will numb about the price?

    Like or Dislike: Thumb up 0 Thumb down 0
  • hankss on Mar 19, 2017 at 11:21 pm

    those who support this ceiling price please wake up. still remember the sugar pricing? once the subsidy is off..the end consumer will suffer. but with petrol u cant buy in bulk…lol. anyone selling petrol tank for home storage?

    Like or Dislike: Thumb up 1 Thumb down 0
 

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