The news that a number of Caltex petrol stations in Malaysia are set to close down later this month has been circulating on social media channels. It was reported by FMT that the operators were sent termination letters by Chevron Malaysia and told to cease operations by June 30, with no reasons given as to why their contracts were being terminated.
Apparently, the report indicates that the issue leading to this may have come about following a dispute between the parties over the bearing of certain costs regarding the maintenance and installation of automation tools, with the operators unhappy that they were asked to pay for these.
Responding to the issue, Chevron Malaysia has issued an official statement on the matter, reproduced here in full:
Chevron Malaysia Limited confirms the recent termination of certain retailers that may have caused several parties and members of the general public to be dissatisfied with the company’s decision. This is in response to feedback and comments made about the company that was shared on social media. Some of the comments have been misleading and misinformed.
The termination issue is a business decision and the company reserves the right to extend or terminate retailers’ contracts at any one time. For all termination process, it will be carried out in accordance with the contractual agreement between the parties.
We look for partnerships that are collaborative and supportive of our Chevron values, and we strive to maintain good relationships with our retailers where they work with us to address concerns. Unfortunately, this may not always be the case with certain retailers, despite Chevron’s best efforts to resolve issues amicably and in good faith.
Chevron Malaysia Limited wishes to inform the public that business as usual continues at all Caltex stations.
No more caltex for me
Real cry babies. This is life. In anything you do in life or business, your contract can come to an end.
The problem with the owners of these stations is that, for years, they never saved. They all jollied and enjoyed the millions they were making.
Even small stations also made a minimum of nothing less than RM100k clean profit every month. Most bigger stations made over millions per month in clean profit.
All the untung they made, the owners enjoy. Never keep for a rainy day. Straight away go buy bungalow in Damansara Heights, buy Ferrari etc
Now cry like baby when contract comes to an end. Hello Caltex owners, contract is contract la. If Caltex sees other potential operators more fit and willing to REINVEST their profits to make their stations more modern and better, of course they will give the lesen to another person.
No point cry like cry baby. If you don’t want to BETTER your station, then give up the lesen to somebody who will.
Everything also want to spoon feed.
These are not owners. They are just Caltex station operators.
Not supporting them. But 100k clean profit /mth is total bullS.
And no, they dont make millions a month. U must be living in your own world.
Though legally not permissible, many individuals have many lesen each. Some even have 15 lesen each. Though it is NOT allowed but Malaysia BOLEH.
So 15 lesen each, if say in JB, sure MILLIONS
My dad ran a station before. Just from the mart alone, untung bersih was about RM15k. Don’t even talk about the selling fuel yet. My dad’s station was one of the smallest.
My bro got Shell station. He makes RM$300k a month after potong all costs. Depends where your station located.
more like 100k minimum sales per month
I think during typing this comment, definitely you are the dumbest person in this world. Where did u get this fact n figures? If you dont know, u better do your research fight. Your facts are misleading in many ways dumbass. Let me tell you some figures. One operators need rolling their capital around rm 1.5 million per month just to get rm 50 thousand of profit. With your fact n figures, it is undeniable you are some bodoh stupid kid from pasar malam.
You sound like a station operator trying to give false facts. We all know how much you guys untung woh
You sound like a station operator or owner. Unhappy the truth is out?
what truth you’re talking about? only moron would championing false truth. Learn to be wise.
Are you calling people who sell in pasar malam stupid? I sell fruits in Pasar Malam despite holding a Masters Degree.
Learn to be humble.
YB Kunta Kinte always speak the truth. Willing to state facts loud and clear. Well read, knowledgeable and a seasoned veteran. Keep up the good work in educating the masses .
“Even small stations also made a minimum of nothing less than RM100k clean profit every month. Most bigger stations made over millions per month in clean profit.”
Wow..is it fact or is it you just want it to be 100k to 1million clean profit?
FYI, station dont make 100k clean profit every month. Small station at most make 15-20K and big station make double or triple of that. None of them make “millions” a month. For small station, the profit will be wiped out for whole month if there is a price drop of more than 12 cents.
Many stations in JB still make 7 figures profit per month.
it is bcuz u have Singaporean drivers filling up FULL & Overfill tank every time. sgd1=rm3.2 ..but still won’t make 7 figures. u can sell 1 million liter but u take 12 cents per liter of revenue, you need to minus the expenses like electricity, salary/wages, insurance, oil company rental/fees, bank charges, crefit card charges, maintenance etc…not much left even in JB. fat dream if u can make 7 figures.
My father operates a petrol station. He does not make $100k clean per mth. Not even half. Much much lesser. Don’t make wild claims. Not that I’m supporting these operators; but at least try to listen and understand what they have to say first.
So i guess 50k, half of that no problem?
50k not bad yo. Lots of HOD, GM, Directors don’t even get 20k.
You mean not earning less than half of RM100k per month after weekly petrol fluctuation implemented? Of course, last time untung more than RM100k per month, no save for rainy days, now cry father cry mother
saya sokong kebenran YB Kunta. You are brilliant man!
your wild imagination about petrol station owners and operators are totally bullshit and only people who are still live in a cave or living in 80s mindset will agreed with your statement.
you only showing your disgusting heart that full of jealousy to people who makes better living in life.
FYI petrol station business is not a good choice if you want a business that could afford you for a lavish lifestyle.
Don’t bite the hands that feed you.
These stations did, and they got served.
If one day this thing happened to you or your family, all i can say karma happened for your bullshit.
The story goes they didn’t want to pay the cost of upgrading payment terminals, as Chevron initially said they will borne it but they u-turn later to ask stations to absorb it.
They went to court and won it at high court, but Chevron appealed and won it at federal court.
Suffice to say, Chevron must’ve felt sour to continue their business with these stations.
Personally, i think they should continue to negotiate with each other for better solution, but hey, I’m neither of the party to know the full story. Maybe they really got so bad that it came to this termination stage.
Dayum shame as Caltex is quite my personal favorite. There’s edi too few of them, and it’s gonna get even less after this.
hey, i am a caltex users since 57 years ago!
So?
Did they give you a loyalty reward? A special discount card for fuel?
You want a cookie?
Wise business decision. 2 Thumbs up
It is not a wise decision, it is the way capitalist company bullying their vendor to be exact
Fitnah makin terbang. Even private business decision must be meddled with. Chevron shud seek legal recourse.
meaning they die die dont want to fork out money for card terminal installation and they insist retailers must use own money so i guess this is some kind of punishment to the retailers
one by one will kelos shop..caltex always beat petronas in fuel tech, now forced to retire..poor caltex..S.O.B petronas
What does refusal of caltex franchisees to Ubah has anything to do with Pet? Inhaled to much petrol fumes kah?
ni mesti puak-puak yang tamak kata nak gulung tikar tu…padan mukak
Dulu ada hati nk gulung…biar skrg gulung cukup2 kih3
AT first,dipping retail petrol price to blame.
Now,dispute over some technical costs.
Next month,….typhoons,bangla mogok over unpaid gaji,etc
So,dont u guys think MORE capable operators should be given a chance?
This weekly petrol price fluctuation showed how SHALLOW AND OVERPROTECTED these PDAM members were.
They were never true businessmen.
They survive on bailout mentality.
The richest man in Malaysia,TAN SRI Robert Kuok said…in business,there is RISK.
To these crybaby dealers,EVERLASTING PERLINDUNGAN is their ideal,but reality hits them hard.
So,YB Kunta….wanna apply to take over the vacant petrol stations?
I don’t want risks. I want guaranteed profits, understand?
You dont want risks,go fly kite.
Gone with the wind,u coward.
The real coward and idiot is you. Don’t even know how to read. Please don’t advertise your stupidity here. LOL.
I’m surprised Albert did not read your Sarcasm this time.
Ruined by local idiots.
Caltex elevated!
Small timer Caltex operators can never challenge Chevron. In a contract dispute between Big corporation(Caltex/Shell & Petronas) & Malaysian, who do U think will win? Most standard contracts are favorable to the owners/corporation.
When there is a clause that states – “the company reserves the right to extend or terminate retailers’ contracts at any one time” says it all.
If you invested millions, and your partner invested thousands in a business.. who would you prefer to have a more favorable contract?
If U don’t want a partner, U can always run the business Sendiri.
Padan muka. .terminate this operators…konon 200 orang hilang pekerjaan……ini 200 orang ada lah bangla ……boss station lepak di hotel with girlfriends….bangla running the show…Chevron kick them out and harap gomen hantar balik bangla ke bangladesh
What about the thousands of Vietnamese those factories in Pg FTZ favour over locals? Go check who are their human resource managers, go n hang them dry also
rumors stated that these people once dragged caltex to courts over these automation fees issue and lost the case.
From what I’m told by other caltex dealers, the terminated stations are Dealer Owned and Dealer Operated stations. Which means they own the land and the petrol station building, unlike majority of other petrol stations which are owned by the oil company but operated by the appointed dealers.
The advantages of the DODO stations are huge since oilco usually paid millions to lease the land from the dealer for at least 25 years. On top of the millions these DODO received, they also pocket tens of thousands of monthly profit from selling caltex products.
The other caltex dealers station are upgraded for free since caltex own the station and the land. Only these 15 stations they cant performed the upgrade since they didn’t own the station. Caltex asked them to upgrade their stations (which i was told cost around a million) but these dealers refused citing that Caltex should paid for them since its their product.I think these dealers want to have their cake and it eat too which is really greedy. Caltex got pissed and fired them.
1. 100k per month let alone mill per month is totally myth.
2. Small station making between 10-20k per month
3. With weekly price swing, easily wipe out the profit
4. They have no control on the price, govt do.
5. They have no control on their stock, oil co do.
6. Dua kali kena kalau price turun dan oil co hantar stock maximum on wednesday
7. Kalau price naik, stock tak sampai sampai dan public sedut minyak kaw kaw look at the que on wednesday bila price naik
8. Mereka mungkin tamak tapi komen yang katakan kalau takut rugi, tutup ramai orang boleh ganti
9. Kalau pengalaman banyak mcm diirang boleh rugi, orang baru apatah lagi
10. Dalam kes ini, nereka operator bukan owner land
11. Dalam contract, memang boleh di terminate oleh oil
Co
12. Satu masa kerajaan buat self service, arahkan oil co absorb cost
13. Caltex charge mereka monthly
Mereka saman dan menang in few lower court hearing, tapi kalah kat federal court
14 mereka kena bayar ganti rugi to caltex, dan mereka bayar
15. Then caltex terminate mereka, dan caltex berhak
16. Selain mereka, pekerja mereka juga hilang punca pendapatan, sebahagian besar lokal dan ada juga bangladeshi.
17. Komisen dealer adalah kecil dan tetap per liter dan tak tertauk pada harga semasa
18. Komisen ini sudah ditetapkan dari 8 tahun dahulu
19 setiap tahun kos meningkat; gaji, letrik, air, gst, equipment etc
20. Kes samun, curi, tak bayar, kena maki banyak.
21 ini adalah fakta.
22. Kalau tak tahu jangan fitnah atau reka cerita.
23. Jangan menulis ikut perasaan
well said..ALL FACTS!!!
Now owners come to PT blog to spread lies. My bro got station in PJ, he makes RM300k per month. Don’t lie RM10k to RM20k.
U sure RM300k profit or sales?
RM300k if sales belum deduct costs, by the time deduct semua, tinggal RM10k, 20k profit is possible.
your bro is making rm300k clean?, meaning he is selling at least 2.5 millions liter of petrol per month(300k/0.12) and needs to sell more to cover the expenses. STOP DREAMIN. no Station in malaysia sells that much. not even in JB with SG cars filling.
Correct me if I’m wrong, that’s like filing up 4 (Ron 95) UGTs every day.
Turnover 300k or profit? Even station selling 1mil litres don’t earn 300k. You probably need 3mil litres per month to profit 300k. I think whole country might have less than 10 such kiosks?
How many pump islands does he have? That should be another clear indicator.
Which station is that shell? Care to elaborate. If not you just another liar
Learn to respect highest court in the land. Even people go prison cause they respect highest court. Why you cannot respect?
You got your info wrong. DODO invested millions in lands, equipments, building etc. So they signed a contract with the oil company to sell their brand product for a period of time, say 15 years. It is legally binding agreement, need to PAY if you cancel the contract. If they are DODO they can starts counting $$ and getting ready to change to other brand like Shell BHP etc. Why sad? If you wants to be DODO, make sure your grandfather left you a lot of $$ and few pieces of prime lands.
Caltex? I only enter that station to pump my tire, caltex fuel technology sucks max
Closure & termination? Hmmm…fishy. So many con-sultants provide in-depth analysis without proper data & basis. Pure speculation & assumption! Wait, Assumptions are MOAB!
better bring this case to court and let the justice makes the decision, we shall see who right or who wrong
do you know how much you have to spent on lawyer’s fees to take on giant oil company like chevron? Petronas? Exxonmobil? They can have a team of Super lawyers from everywhere to fight with you in a court and drag the case to number of years and basically bankrupt you…lower court,high court,appeal court,federal court. Can’t win lah. $$ talks. even if you win, miraculously does happen…you still lost millions of $$. Oil companies make billions, millions is like peanut. So STOP dreaming of fighting them in court.
Katak, Other than a few banks like MayBank and Public Banks that makes Billions $$ in a year, please tell us which oil companies in Malaysia makes Billions $$ in the retail/marketing sector.?
if dont like certain petrol station, dont pump there