It was previously reported the government is looking at a new fuel pricing mechanism to liberalise the industry, which will likely result in prices being announced on a daily basis rather than the current weekly method. However, such a pricing mechanism will not be introduced this year, according to the domestic trade, co-operatives and consumerism (KPDNKK) minister Datuk Seri Hamzah Zainuddin.

In a report by NST, he said the ministry is still developing a new formula for the mechanism. “Now, we are announcing (the prices) every week. We will continue to do it until everyone understands their responsibilities, be it oil companies, station operators or consumers,” he said.

“Consumers will need to have a group or an application to help them to find where to get the cheapest petrol. When the time has come, we will do it,” he continued. This will allow fuel retailers the chance to compete with one another by providing the best prices to attract customers.

The minister also said he will meet with fuel retailers next week, and will make an announcement on the weekly fuel pricing mechanism following that. Recently, the Petrol Dealers Association of Malaysia (PDAM) said the weekly fuel price announcements were “unhealthy,” and resulted in many petrol station operators having to shut down due to losses suffered.

What are your thoughts on the matter? Do you welcome the proposed switch from a weekly fuel price announcement to a daily one?