The government is being urged to revamp the current fuel commission-based system to help petrol station operators, which are continuing to be affected by the fluctuating pump prices of fuel, The Malaysian Reserve reports.

The call was made by the Bumiputera Petrol Dealers Association of Malaysia (Bumipeda), which says it plans to submit its recommendations to the domestic trade, cooperatives and consumerism ministry (KPDNKK) before the end of April.

The year-old association, which represents about 2,700 Bumiputera petrol station operators across the country, said the present fixed-fee mechanism should be scrapped and replaced with a commission-based metrics system.

Its president, Datuk Abu Samah Bachik, said a revamp of the current commission system was needed, and that a 8% to 10% commission per litre should be considered. Presently, operators gain 12 sen for every litre sold to customers, but the weekly fuel pump price mechanism has thinned margins, especially when fuel prices drop.

“The present commission has been at the same level since 2008, but operational costs have gone up. We hope it can be implemented as soon as possible before more petrol retailers close shop,” Abu Samah told the publication.

On a suggestion made last year for a change from the weekly pricing mechanism to a daily format, Abu Samah said that any move to a daily price mechanism similar to those applied in developed countries will simply thin earnings further and drive retailers out of business. Earlier this month, the government reiterated that it will not move away from a weekly determination of the retail pricing of fuel in the country.

The publication had previously reported that nearly 300 petrol station dealers had abandoned their business since the implementation of the weekly fuel mechanism, which began on March 29 last year. Dealers complained that the mechanism had created a rift with oil companies on stock management, with both sides striving to minimise losses or maximise gains depending on the price movement.