Following the finance ministry’s announcement that fuel prices will follow a weekly float system from next year, the Petrol Dealers Association of Malaysia (PDAM) wants the government to hold talks with its members before the move is implemented.
On Monday (December 24), finance minister Lim Guan Eng said the switch (back) to the weekly format is due to falling global crude oil prices, which will likely result in lower fuel prices, including for RON 95 petrol.
In a report by The Star, the association said that while lower fuel prices are welcomed, the move would result in losses for dealers should crude oil prices decline further. “As dealers, we have no control over the price. Say we buy petrol today, if the government changes the price tomorrow, we have to follow that even if we had bought (the fuel) at a higher price,” said Datuk Khairul Annuar Abdul Aziz, president of PDAM.
“Unlike other businesses where they can still keep a margin, we can’t, as we are at the mercy of the government. So, let’s say the price goes down every week, we are then hit (with losses) four times a month,” he added.
Khairul also noted that dealers are unable to determine how much fuel to stock because the decision was up to the oil companies. “So we can’t even buy less stock; our hands are tied,” he said, adding that dealers usually have a 10 sen per litre margin for petrol – a price decrease more than that would mean a loss on the dealer’s part.
“If the reduction is gradual and doesn’t eat up our margin on a daily basis, then it would be okay but the government needs to discuss with us. It’s right that the government wants to give that (lower fuel prices) to the rakyat and we are all for that, but if we continuously sell at a loss, matilah (we will suffer),” said Khairul.
The PDAM president is suggesting to the government to allow dealers to use a consignment system when buying fuel, or for a win-win mechanism to be put in place.
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Support Datuk Khairul. PDAM dealers will losing money. When the prices go down next week, whatever stocks we hold and bought earlier at higher price, we have to sell the balance at loss.
Bunch of lazy fellows. When petrol go up, these guys make millions in clean profit. Then they keep quiet. Now, when petrol go down, which is not often, they make big noise. Last time, they even asked gomen to subsidise their losses
But most times it went up, they each make tens of million ringgit
We should open the petrol lesen to everybody in Malaysia and not a selected few. This alone shows how lazy and incompetent PDAM is
Other country have daily price change and different price between company and they have no problem following it. And they are also more competitive, offering discount vouchers, patnering with supermarkets such as tesco for fuel discounts…benefiting the customers. PDAM have it easy, no real competition between petrol station, only the additive and royalty program is different. Only tunggu duit masuk. And with subsidy, they gain more. Hope the new gov doesn’t give in to their demand. Oh wait….someone son owns a fuel company.
Bisnes confirm untung punya…. only in mesia.
In free market countries, the price is not set by the government. They can finish off stock bought at a higher price by selling at a higher price too, however, if others sell at a lower price then they will not be able to sell at all.
This is very easy to do, Khairul. Dont talk about margin, otherwise I am gonna screw you even more
Dont get angry until mouth foam. You have been enjoying fat margins for 100 years already.
Totally agreed. So much complain, just let go & close their dealerships. others can do better
If Trump attacks Iran tonight,and within a week Brent shoots up to US 80dollars a barrel,I think these cry baby dealers do not have time to meet LGE or any ministry officials.
They will be celebrating huge profits at 5 star hotels all night long.
Hello….the era of everlasting tongkat,bantuan,perlindungan has ended.PH is busy doing fire fighting and damage control from all the fiascos.
margins stays the same la,petrol @ 1.90/L or 3.20/L, margin remains same @ circa RM0.10/L
In other words,these cry baby dealers want Guaranteed profits ..hello ,only Ponzi schemes can guarantee instant profits!!!.Before GE 14 under the rogue regime,oso complain.Now got New gomen,lagi complain.In Australia,the ang moh have DAILY petrol price fluctuations.R u saying ,they cheat to survive?In fact,they r still thriving.In business,got up n downs.If u want fat returns all the time,then kindly surrender yr licences to hundreds of more daring business men.Just pathetic.
Gov should roll out floating fuel prices. If Shell selling Ron95 at Rm2.18/ℓ, further down the street Petronas can sell Rm2.14/ℓ. Open the free market, all of us enjoy cheaper goods…
petrol price will never be retail at RM1.50, PDAM must maintains fat profit margin.
what fat margin are you talking about? its circa 10sen/L for the past 20 odd years…
So let’s say the price goes up every week, dealers then racking in profit 4 times in a month.
Come January, PDAM will come up with stories on a weekly basis about how many dealers have to close down
One petrol station in my village in Perak is thriving because it also has other businesses such as a cafe, dhoby, car wash, bil payment, phone charging and numerous other services.
So it is up to the petrol station operators own creativity to do something by operating a petrol station not merely for petrol but also to carry out other business activities to earn profits
Does anyone else realise that this PDAM will always make noise when the prices go down… but they are quiet when the prices go up.
They make money whatever the cost is… make even more when the price hikes up… sometimes you lose a little but still win a lot. Make hay while the sun shines.
Whenever the dipped, premium grade sure abis stock n will be not replenished
Wonder where were this papadom boys during their sunny days..
Gomen shld start to embrace on EVs now..Say no to fossil fuelled vechicles. It’s time! Tired of PDAM BS!
Here comes the greedy bastards.
Exactly, if you can’t compete or make profit in this business then just let it go. If you want guaranteed profit, just invest your money in FD. Simple…
The problem is easily solved by having a free market price. Let the dealer sell at any price they seem fit. However PDAM cannot be allowed to exist as it will become a cartel.
U all so pandai go open ur own petrol station la.
best comment here.
Must be raking in fat profits as a sponsored cytro eh?
Me opens 7 11 gas station
Me too open family mart petrol diesel stations.
dumbest comment here. petrol station license is tightly controlled, not easily obtain even by businessmen who have enough capital.