National oil company Petronas has introduced measures to ease financial burdens faced by its station operators, according to The Malaysian Reserve (TMR). Many station operators have sustained margin fluctuation and losses after the introduction of the weekly fuel price float system in April last year, it said.
An industry source told the news outlet that Petronas Dagangan introduced a guaranteed profit margin scheme Jan 1 this year, and it has been opened this month for operators of its 1,045 fuel stations nationwide.
“We have introduced immediate initiatives and as a result, none of Petronas dealers have closed down since 2017,” Petronas Dagangan managing director and CEO Datuk Mohd Ibrahimnuddin Mohd Yunus told TMR. The oil company is working on better sales incentives for ease station operators’ financial burden, and a better loyalty programme is in the works, he said.
The news outlet also reported that the Petrol Dealers Association of Malaysia is seeking margin raise to 18 sen per litre, which is around 40% higher than the current commission rate. The current commission rate is set at 12.9%, and was mandated by the Malaysian government since 2008. Meanwhile, Petronas Dagangan has allocated RM300 million in capital expenditure for 2018, down from RM400 million for last year.
Elsewhere in its retail operations, Petronas Dagangan is also expected to open 10 to 15 new stations this year, the report added. The fuel retailer also has campaigns ongoing, including the ‘Stay Alert, Stay Hydrated’ campaign which runs for the rest of the year.
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Petronas to help their station operators. Petronas owned by all Malaysians.
Cukurlah ada Petronas, economi Malaysia ke arah negara maju
Petronas Twin Towers KLCC terulung.
wow.. a guaranteed profit margin scheme .. how to join this guaranteed profit business??
how to join? Super strong cable…
‘none of Petronas dealers have closed down since 2017’ what he means by Petronas dealer???
my area 2 stations closed down
Aid dealers and pass the burden to consumer?
Aid dealer by gomen absorb la