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.
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Tolak flipflop.
https://paultan.org/2017/08/17/weekly-fuel-pricing-system-to-be-retained-kpdnkk/
PDAM are bunch of lazy fellows. Always asking for help. When petrol goes up, each of them make hundreds of thousands of ringgit in profit.
When petrol goes down (hardly goes down), they cry for Government help and bantuan.
By the way what is Bumipeda?
The association should be banned. Why create the association just to protect one segment of petrol station owners?
If they are sincere in their quest, they will protect ALL petrol station owners and not just one segment
thats what PDAM is for….
All the time want tongkat. Disgrace. Make so much of money like 6 figures every month very normal
Some even have 7 figures per month clean profit
Some got up to 20 stations each despite rule only 1 per person
Should just surrender their coveted Service Station license back to brand principals. Utter disgrace
please substantiate that claim of 20 stations being run by one dealer.
yes, minimize loses and maximize gain for all petrol station operators in order to survive.
We Consumers to need to minimize our loses to survive too.
high time for petrol station licences be open to all in Malaysia and not a selected few. If you cannot compete, then too bad
How come petrol station owners all over the world have no problem competing with each other?
Our PDAM talk big. Never contribute a sen to the rakyat. Infact, they never even employ Malaysians. All stations now….not even 1 Malaysian is employed.
Instead of money circulating in our economy, money is being repatriated back to other countries.
Every year, BILLIONS leave Malaysia because our PDAM refuse to employ Malaysians
And yet, they demand this and that
Don’t lie. I was at shell sprint highway yesterday and there were many Malay workers pushing costa coffee to me
will you say the same of the factories in Penang FTZ,not hiring locals in the same numbers as foreigners?
Come on, make some noise about locals shunned in favour of Indochinese workers by the management of these factories. Where’s you bleeding heart for them?
If you cannot run the business. Please close shop.
It is like playing football. Some rules will change, but basic rules remains true. Players must adapt!
Dont adapt, die.
You tak suka, you keluar from petrol station business la. No one force you to do that business.
Bisnes gerenti untung punya… hanya kat mesia
Consumers wanna change the system. Dealers wanna change the system. Okay lor. Change to free float daily, then let each side rage when prices go up or down daily. Ready me popcorn.
This gagra v active n DNT know y paultan always posts his nonsense comments
Is this supposed to be English or Spanish. Cual?
ROFL!!!
This one sounds like that Proton 1S dealers who can’t adapt & upgrade to 3S despite been making profit since the 90s.
The world has moved on, globalization is now the keyword but these guys mindset is still stuck inside the coconut shell.
So I guess IF petrol goes down to around than RM 1.00 per liter, they will want back the 12 sen per liter commission instead of the 8-10% (which will be only 8-10 sen per liter), no? Good job! Does it ever occur to them that they are selling MORE petrol today because we have way more cars on the road than yesterday? 100 cars 12 sen per liter today will be more than 10 cars 12 sen yesterday.
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Obviously you’re a petro station owner or related to one.
I’m just curious, why is there so many new petrol stations opening up as compared to those close down?
Also the increase of vehicles on the road all no need pump petrol and run on air? So more vehicle pump petrol will need to hire more staffs and install more lights or spend more on maintenance cost?
How much have the average operational cost increased in comparison?
#GoFlyAeroplaneSmartA$$
obviously you dont run one, so you definitely do not know for a fact how destructive, dirty and inconsiderate malaysians can be, male or female, young or old, urban or rural.
many factors contribute to the cost of running and maintenance of a station like staff turnover (near constant cycle of finding replacement-adverts costs, paying overtime to existing staff, retraining and purchasing new uniforms..), but the most damning is customer’s behavior, or more correctly the lack of it.
too many times have i seen graffiti in the rest rooms that need to be cleaned and repainted, diapers/sanitary towels/tampons clogging toilet bowls that require the srvices of plumbers, dustbins scarred with ciggy burns that need to be replaced, soiled and spoiled toilet seats due to users squatting on them, water outlets clogged with ciggy butts, broken flush buttons due to users using their feet to push them, toilet rolls/tissue and hand soap galore, broken tire inflators due to improper use and/or vandalism…. some of these require equipment replacement which costs money.
thats not including the costs of chemicals, equipments, garbage bags, scent sprays, bought regularly to maintain cleanliness. and the cyclical requirement of repainting parts of the station like kerbs, off-loading areas, bollards, parking lines etc etc…. it all adds up my dear.
Bro, your complaints on damages are mainly on toilet. You running a petrol station or public toilet?
It’s a business owner responsibilities to control operating cost, which in turns will affect profitability. If you can’t do it, find a way. Stop crying foul for low profit margin because what you selling is price controlled item, you knew it the first day you go into this business.
Then customers shouldn’t complain if the toilets are in poor condition because… gas station not public toilet right?
When did I complain about low margins?
What I am complaining about are armchair experts on the outside looking in and casting aspersions about something they don’t know completely about.
Friend, i know its tough to run the business… but at a bigger picture, the number of station should be determine by the market demand…. if the stations have over expanded…. and the goverment have policies to protect you, it will be at consumers expenses…. then this gov will make u richer and the rest of the people poorer… you think thats right way the our gov should operate
We only want those who know business to run petrol stations. Obviously these people who are running it now don’t.
Mind to share what kind of businesses doesn’t have commitments, and staff salary to pay?
Study on undersea tunnel for instance…
Bingo!
2700 station close shop? close… i am waiting… close faster… don’t just talk… close…
Maybe they should hand their petrol station to more competent person to run the business instead of whining here and there
The present system is working fine. We need to work towards being a developed country.
tomolo up 10 sen expect all diam2, just wait and see
Many naive commenter here thought open market is good and they hv a chance to go into the industry If petrol business opens for all…. To know better, just look at Thai, sg, aus, US…. All those country with open /dereg petrol market had way higher price/L….
WTF are this idiots talking about? if the fuel price drop, they lose a bit money, what about if the fuel price up?? they also earn a bit more!!, they already earning 12cent/little
Based on the statistic,
only 2 weeks the price drop is more 7 cents, which they might lose money in that 2 weeks only!!
sum of the price difference:
Ron95:0.07 Ron97:0.06 Diesel:0.07
SO, STOP COMPLAINING!
Keng, let the price be higher. It is a good thing. Petrol and diesel should be removed from the list of price controlled items. No more subsidy. Each station set whatever price they want. The government should not be setting prices.
This way, the government does not get blamed when price goes up. Oil prices are low now. It might fluctuate a little, but there’s not much room for it to go very much lower. The only possibility is to go up eventually. The government should cut it lose and set it free now. If you wait until it’s about to trend up, and then “liberalize” prices 3 weeks before it rockets up, the government is sure to get the blame.