Station operators must not start price war – KPDNKK

Station operators must not start price war – KPDNKK

Petrol station operators who want to offer fuel price promotions at their premises must first seek the permission of the ministry, said domestic trade, cooperatives and consumerism (KPDNKK) minister Datuk Seri Hamzah Zainuddin, following the start of weekly fuel price ceiling announcements from March 29. They must not arbitrarily make sale offers, which can trigger a price war, Bernama reports.

“We don’t want the offers to have elements of surprise which can make consumers feel cheated. For example, they offer a cheap price but when consumers turn up they say the offer is for the first five customers, this will make the public angry,” he said.

KPDNKK has no problems if any petrol station operator wanted to make offers including selling fuel at lower rates but it must follow the standard operating procedure, said Hamzah. Earlier, the ministry said that it expects fuel prices to fluctuate by 5-10 sen each time with the new fuel ceiling price mechanism.

Concern was also voiced from outside the ministry, with the Petrol Dealers Association of Malaysia (PDAM) saying that certain dealers, especially those shifting smaller volumes, would not be able to take that route as they lack the profit margins to be able to offer discounts.

Under the new pricing system, fuel prices will be announced every Wednesday, with the new prices coming into effect at midnight the following day. PDAM was at first unhappy with the move to weekly fuel pricing, but later welcomed its implementation.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • PM shud fire this guy. Is he a remaining utun mole???

    Like or Dislike: Thumb up 36 Thumb down 1
    • mondayblue on Apr 03, 2017 at 11:42 am

      Whateva the outcome.
      It’s always a Lose-Lose situation for the pipu :(

      Like or Dislike: Thumb up 24 Thumb down 0
    • Ykkzip on Apr 03, 2017 at 11:53 am

      It makes sense to end fuel subsidies to save billions. These funds could finance education, health, affordable housing and other needs of the vulnerable segments of the population. As general fuel subsidies provide more incentive to the rich than the poor.

      Like or Dislike: Thumb up 11 Thumb down 25
      • Still cldnt see where the savings went to

        Like or Dislike: Thumb up 44 Thumb down 1
        • PAN borneo, MRT1&2, LRT extension, LRT3, more busses, KL urban regeneration, etc, etc, etc…

          Like or Dislike: Thumb up 1 Thumb down 15
      • JokerMY on Apr 03, 2017 at 7:24 pm

        So the rich don’t pay taxes? It’s not like the rich and the poor are paying a flat rate tax.

        Like or Dislike: Thumb up 4 Thumb down 0
    • Albert Yong on Apr 03, 2017 at 1:41 pm

      This also sounds like car prices in Malaysia. Everything also set by MITI. Honda Malaysia wanted to sell the new Honda City starting from RM50k, but MITI said no such thing. Minimum is RM78k.

      So what real competition do we have here? All tipu tipu competition. All car companies are owned by Gomen. Toyota is UMW, Honda is DRB, Hyundai is Sime, BMW is Sime, Ford is Sime.

      All the competition is all a drama to fool the rakyat. The same with petrol price war. It is all a drama to fool the rakyat into believing there is a price war.

      For 30 years, we have been fooled to think there is a price war between BMW and Mercedes. And there is a price war between Honda, Toyota and Nissan.

      Think again. How can there be a price war when MITI has laready determined every single car price? (to protek Proton of course)

      This fuel price war is kelentong war.

      Well-loved. Like or Dislike: Thumb up 78 Thumb down 4
    • Albert Yong on Apr 03, 2017 at 1:42 pm

      What he is saying is simply this….PDAM is Supreme in Malaysia. If PDAM say sit down, gomen will sit obediently. If PDAM tell gomen stand, gomen will stand obediently.

      What he is also saying is PDAM decides what they want to do cause it is the big guns and cronies that hold all the petrol licenses.

      With this in mind and how powerful PDAM is, we should propose that PDAM be disbanded (cause too powerful) and petrol station licenses be open to EVERYONE in Malaysia and not just a selected few.

      Every single of the 30 million rakyat got the right to apply for petrol station license if they have the ability to run the station.

      Now PDAM is acting like the AP cowboys. Everyone in Malaysia suffers just because 20 or 30 cronies want to get richer and richer.

      Price war is good for the consumer. Why is Ministry protecting the petrol stations? Takut foreign stations more competitive than Petronas?

      Like or Dislike: Thumb up 21 Thumb down 1
    • Albert on Apr 03, 2017 at 5:16 pm

      At first BOLEH tukar harga.Now,after PDAM started shedding croc tears,TIDAK BOLEH.
      Just fix the bladdy price,dont play with the emotions of the rakyat.
      Shambolic piece of s_it,these dudes.

      Like or Dislike: Thumb up 16 Thumb down 1
    • Redidiot on Apr 05, 2017 at 4:28 pm

      Not happening lah. Dealers will stick to ceiling price.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Sonyman1 on Apr 03, 2017 at 11:28 am

    Malaysia boleh…..Yup. LPPL

    Like or Dislike: Thumb up 5 Thumb down 1
  • Kuinosan on Apr 03, 2017 at 11:30 am

    This is a problem you Morons created. Now you Morons fix it!

    Like or Dislike: Thumb up 19 Thumb down 1
  • Vincent on Apr 03, 2017 at 11:35 am

    KPDNKK mabuk…they don’t know what they are talking

    Fluctuate fuel prices suppose to create good competition and benefit consumer.. rakyat…now they worry that price war ? Ambil gaji dari rakyat money… but protect cronies benefit!

    Like or Dislike: Thumb up 18 Thumb down 0
  • Malaysia Boleh on Apr 03, 2017 at 11:37 am

    “especially those shifting smaller volumes, would not be able to take that route as they lack the profit margins to be able to offer discounts.”
    Ask those petrol station surrender their license to me if they think not enough profit to earn, I am welcome to my business!

    Like or Dislike: Thumb up 10 Thumb down 0
  • in other words form a cartel and f the rakyat..

    Like or Dislike: Thumb up 8 Thumb down 0
  • Petrol Head on Apr 03, 2017 at 12:00 pm

    Just set a blanket policy on discounts and let the market forces dictate. Healthy competition will only benefit the consumers. Shouldn’t the ministry be for the rakyat and not petrol station operators ?

    Like or Dislike: Thumb up 14 Thumb down 0
  • Rubbish policy. Not consumer friendly at all.

    Like or Dislike: Thumb up 12 Thumb down 0
  • panjang on Apr 03, 2017 at 12:05 pm

    People will felt they are cheated by the gomen becoz they will realise the actual price of fuel of which can be sold without gomen intervention.

    Like or Dislike: Thumb up 6 Thumb down 0
  • anonymous on Apr 03, 2017 at 12:05 pm

    Why the heck need to get permission from ministry in order to do offer? Competition is healthy, end-consumer benefits at the end. If want to protect this market’s sellers, come protect my industry too, I have a lot of price war between sellers here in my market, lol.

    Like or Dislike: Thumb up 17 Thumb down 0
  • MeToo on Apr 03, 2017 at 12:05 pm

    Correct.

    We dont want price war as it will only benefit the consumer. In Malaysia we must look out for the big business/cronies.

    We absolutely CANNOT have a free market in malaysia…. Monopoly is the way to cari keuntungan..

    Like or Dislike: Thumb up 21 Thumb down 0
  • Jamari on Apr 03, 2017 at 12:58 pm

    Kpdnkk is useless….barang naik no control
    Minyak turun bising sana sini….

    Like or Dislike: Thumb up 15 Thumb down 0
  • dont allow price war and anti-cartel laws ….what is this nonsense ??? if can’t handle don’t suggest such move !

    Like or Dislike: Thumb up 12 Thumb down 0
  • sohai on Apr 03, 2017 at 2:13 pm

    why we find the need to protect the small time stockist in the expense of the rakyat?
    isn’t it other industry also like that? small time hardware store or furniture shops or even vege sellers would have to compete with big hypermarkets.

    small time stockist who can’t necessary compete on giving the cheapest price because of volume will just have to come out with better ideas and better services to lure customers.
    there are so many other factors then just price alone. such as the location of the station, the brand in which it carries…. etc. all we need is give them sufficient notice to reinvent themselves, failing which, only the fittest survive..

    I think the ministry shouldn’t worry about price war. instead they should monitor the anticompetition behaviour in which they team up to charge the maximum, which is against the anti-competition law.

    Like or Dislike: Thumb up 13 Thumb down 0
  • truthbetold on Apr 03, 2017 at 2:26 pm

    it is to protect crony owners of petrol station, which roughly 90% are a certain race..and to lobby it, they love to use “price war”…WAR…but the fact is “open competition”…COMPETE…easy money, why compete?

    Like or Dislike: Thumb up 5 Thumb down 2
  • Fucukyongtaufoo on Apr 03, 2017 at 2:50 pm

    Time to shut down KPDNKK for good. Habiskan duit rakyat saje..

    Like or Dislike: Thumb up 7 Thumb down 0
  • Ollie on Apr 03, 2017 at 3:46 pm

    It’s a simple equation –

    Small time operators can charge the maximum in areas of low volume. Consumers can understand as the transport charge for the fuel is higher – and they wouldn’t want to drive 10km to save 10sen per liter.

    Larger operators in high-volume areas can lower the price and play a volume game.

    Win-win for everybody.

    Like or Dislike: Thumb up 14 Thumb down 0
  • sabahan on Apr 03, 2017 at 3:51 pm

    aiya… then you just set the price that everybody must follow la, what for say “ceiling”?
    people price lower than ceiling kana tangkap, higher kana tangkap.

    Like or Dislike: Thumb up 6 Thumb down 0
  • qwerty on Apr 03, 2017 at 5:00 pm

    When you c them say this, you know it’s gonna happen.
    Same when they say harga minyak tak naik..

    Like or Dislike: Thumb up 2 Thumb down 0
  • Not Toyota Fan on Apr 03, 2017 at 5:19 pm

    Killing off entrepreneurial ideas, killing off open and free competition, killing off individual free will to choose who to buy from…. And you wonder why this country has not progressed. Might as well be ignorantly happy living under the coconut shell. Syukur Malaysia Aman.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Hot dog on Apr 03, 2017 at 5:25 pm

    Mr. Hamzah … Saya lansung tak risau station gave cheap price for first 5 customers ! Saya boleh pergi station lain !! Kalau nya tipu dia rugi bukan saya rugi !! paham tak !!

    Like or Dislike: Thumb up 8 Thumb down 0
  • Ben yap on Apr 03, 2017 at 7:31 pm

    Just fix the price for ron95 at rm1.50 per liter regardless of price increase or decrease.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Slyfox on Apr 03, 2017 at 10:40 pm

    As with any changes especially policy changes. The market needs to be given some time to adjust. I disagree with the price war concerns but I understand KPDNKK’s worry on manipulative dealers. I would suggest KPDNKK monitor these and once found, catch the errant dealers and take away their dealers’ license or ask them to pay hefty fines or both. Why do we have to penalise the consumers and dealers who are genuinely able to compete cleanly?

    Like or Dislike: Thumb up 0 Thumb down 0
  • superdriver on Apr 04, 2017 at 10:42 am

    When we used our last RM10 to pay for petrol to drive home, no petrol station was interested to hear the customers grouses. It was cold hard cash that do the talking. To avoid talking to the customers or helping the people, the owners hire bangla’s that has zero knowledge in finding locations, products, services and etc. Virtually no help at all. (Remember the fire extinguisher incident where the bangla refused to give it some years back and the women died?).

    Petrol stations initially were there to help motorist with problems with their cars, motors and more often have offered to show some mercy. Now days nothing is given.

    Its pay back time! Yes its a bitch.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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