The domestic trade, co-operatives and consumerism ministry (KPDNKK) minister says there will be no change to the current system of announcing fuel prices on a weekly basis, but a new formula to determine fuel prices – which is aimed at stabilising the national oil industry – was still being studied, Bernama reports.

“There are people who want the announcement to be made from weekly to monthly. No, the system that we have right now will remain,” Datuk Seri Hamzah Zainudin said.

Last Friday, he had said the ministry was set to meet with oil industry players this week to discuss a new formula to determine fuel prices. This was to prevent petrol station operators from suffering losses if fuel prices continued to fall under the current method.

Hamzah said he had met with industry players to discuss the formula to ensure that it would not disadvantage any party, adding that the government was looking at a ‘win-win’ formula for all parties, including consumers, who would stand to be affected if petrol station operators went bankrupt.

“Currently, the average distance of a petrol station from another is about 25 km, so if one shuts down, it will be difficult for consumers who will need to go far to refuel,” he explained. Presently, there are 3,500 petrol stations operating nationwide.

Last month, the Petrol Dealers Association of Malaysia (PDAM) described the weekly price adjustment system as “unhealthy” and the reason why several station closures had occurred since its implementation at the end of March. At the time, the ministry responded by urging station operators to look for other sources of income to complement the sale of fuels, in order to generate a larger profit.