Petroleum products can be sold at prices below the government-stipulated levels to foster competition amongst retailers, said domestic trade and consumer affairs (KPDNHEP) minister Datuk Seri Saifuddin Nasution Ismail.
According to the minister, all 3,500 petrol stations from the six main representatives in the industry are currently selling petroleum products according to the automatic pricing mechanism (APM), which pegs the price of RON 95 petrol to RM2.08 per litre until the end of this year, Bernama reported.
The retail prices of petroleum products could be reduced if the six petroleum companies practised the principle of competition through innovation and efficiency rather than focusing on the business based on petroleum products, said the minister.
“If it is implemented, we can see petrol stations selling at different prices. For instance, if Shell is selling at RM2.06, Petron RM2.07, then go to BHP which is retailing at RM2.04,” he added.
“Petrol retailing business is a business of volume not margin which means competition among station operators can take place. How much to be reduced depends on the operator as they need to make comparison in terms of costs and quality of service offered,” he continued.
The government is also prepared to provide support for petroleum companies, including the provision of certain benefits for taking part in price reductions, said Saifuddin Nasution. The current RM2.08 per litre price cap for RON 95 will be removed once the targeted fuel subsidy is in place, and its price will be floated in a similar manner to that of RON 97 petrol currently.
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Syabas DS Saifuddin .. PDAM dignity forum next,
PH cakap tak serupa bikin. Later will be ignored or will Uturn.
Instead of talking BS, why not DS Saifuddin setup his government approved petrol station that will give us petrol at RM1.50/L. How about that DS?
The biggest problem is PDAM. They are so lazy and act like a cartel
We need to open petrol station licence to all Malaysians and not just a few. Then you will see the industry progressing.
Currently PDAM is so lazy. Always wanting bantuan kerajaan. Oil price go up, they keep quiet and each reap millions in profit. Oil price go down, they make so much of noise and demand Government give them compensation.
Time to abolish NAP and NEP. You will see we will be competitive back again
Fully agree. Exactly macam Venezuela bankrap government approved petrol station, $0.01 per liter. That will give us petrol at RM1.50/L and we export lambak to selatan Thailand. And somebody gotta repay the Rm55B hutang 1Mdb … How about that Pak najib?
Don’t talk about RM55 Billion debts when you somehow got hundreds of Billions RM to throw into Penang mega reclamation that is going to wipe our coastline, unrequired undersea tunnel, overpriced but underspecced LRT3 and RTS, unnecessary crooked bridge, and international airport in the boondocks because his son is the MP there. Don’t continue to shift blame and take us as fools we would swallow your sorry excuses.
As above
100% would ignore and continue to maximize profit
Bila bagi murah RM2.08, bashers komplen ..
Bila compete lagik murah, lagi kuat kondem…
For instance, if Shell is selling at RM2.06, Petron RM2.07, then go to BHP which is retailing at RM2.04… and Caltex selling at RM1.50 …
Bila mau jadi murah? Bila Shell mau jual Rm2.06? Bila Petron mau jual Rm2.07? Bila BHP mau jual Rm2.04? Bila Caltex mau jual Rm1.50?
bila-bila saja la bossku.. lol
Then they should have done it NOW! NOW!! NOW!!! Stop talking, stop suggesting, JUST FAKKING DO IT!!!!
Rakyat benefit from lower prices at Kedai rakyat 1M than other shops. We saved a lot.
Yang melayu akan jual RM1.50. tak tau kira rugi. ingat ada untung.
funny minister always… who would want to earn less… nobody will take the first step… people still need to pump oil eventually, they dont even scared losing business by selling the same ceiling price.
Business is about strategy, and about efficiency. If I can be efficient and sell the same product at lower cost, I actually win by volume.
Lower cost doesn’t automatically equate to lower prices. Cost is always coming down for everything but do you see anyone reduce their prices? Nope rite? That because they can reap more profits from the added margin without disrupting the market.
Thats the majority point of view and thats the majority opinion. The thing is, we are very used to this kind of thinking that we don’t realize the good things. We only see the bad things. Even when people trying to suggest good things, we always like ‘ahh.. no la.. for sure will not do one’. Try for once hope that it it would happen. If it doesn’t happen, move on. There’s no point in trying to change what we can’t change.
No point putting false hopes when logic tells you it won’t work. It never works for oil prices, it never works for technology, it never works for consumer goods. Like putting false hopes onto certain promises but now we found they didn’t intend to honour them. More action and less talking, promises, suggestions. Understand?!?!
Seperti dijanjikan, harga kereta akan diturunkan secara berperingkat hingga 2017. Saya akan pastikan setiap janji ditepati.
2007 – Honda City RM97k
2017 – Honda City RM79k
Thank you pak Najib!
maybe Car automatic pricing mechanism CAPM? Eg.
B-Segment sedan @ 58k – Vios, City, Persona.
C-Segment SUV @ 123k – CRV, CX5, X70, 3008
Let’s See how the market respond –
Minister lost his marbles.
Petrol station operators do not make much because cost of running a kiosk is still high with overheads including water, electricity and staffing, credit card facility fee, monthly fee to licensor… which could mean aroung RM8k-10k a month.
Petrol station operators take commisions of 15sen per liter RON95… and 10sen per liter DIESEL.
20% of operators only make a net income of around RM1,500 a month if they sell below 200k litres a month. Majority or 70% of operators selling between below 400k liters a month can make around RM2,800 a month.
A very few (10% of operators) who make around RM4,000 a month for selling above 600k liters amonth.
Minister shouldn’t just talk so much without getting the local facts and numbers right and not just those on paper.
Why some can go on while some kept on barking. Is it possible that some dunno how to run business or last time start up coz got cable?
Businesses opens and closed down every now and then esp when they cant compete. No difference with petrol business. Why gomen must die2 help petrol station owners only?
Some always look at the other side of the fence…dont want to look at their own yard.Remember when Grab becomes favourite and a certain taxi company drop their monthly rental to their driver nearly 50%? That company didnt go bust and their driver can kept on driving.
They also lobbied PH gomen to put roadblocks onto Grab business which is working well to reduce the number of available drivers and Grab is losing business. So did they bark, no they just throw spanners and wrenches at their competitors. Nothing wrong by being unethical am right? After all it’s just business and only the unethicals wins.
20% of petrol station operators make a net income of around RM1,500 a month ? and a very few (10% of operators) who make around RM4,000 a month ? hahahahaha
Mic drop….
Hahahaha!!! What naive thinking is this! Asking companies if they would like to take a hit in profits and then suffer drop in share prices plus the ire of investors and shareholders by ownself reducing their prices. Who would commit harakiri on a corporate scale?
Eh, why not ask your daddykasi Petron to substantially reduce their petrol prices and get it started? Ada bran?
Then all those big hypermart/supermarket must have naive management. A thesis should be written about this topic. It could won a nobel prize.
Wow. And you based this on what… the weekly brochures they sent out? Do you think these hypermarkets and supermarkets have the SAME exact pricing for everything else and those who give these weekly bargains will be the winners. Don’t make me laugh when you know nothing about FMCG.
Many of them have promos because it came from the manufacturers/brandholder own promotions. Likely if you see one shop having promo, the other shops will be doing it too. Do you know what they would “lose” in lowering prices for 1 item, they would just recoup by raising prices slightly for other items? I’m sure you don’t because you wouldn’t have used such flawed example if you had knew. Now you just sound foolish. Don’t troll here with your stupidity again.
I am from a supermarket/hypermarket industry, with access to every single data about their costs, profit margin & sales. I have thought very hard to reply this but my reply would be so long I would rather make a book. So, !@#$FDSfasdfsd#$#$@3%^%^&%^*!!
Lets have war!!
Like asking which PH Minister would dare take a paycut to help clear those debts they had been shouting about. Lets see.
Remove subsidy and let them fight
i cant wait until the day they remove the fuel subsidy completely !
When I travel to Europe or Australia, I don’t see petrol attendants at the stations. Which I support, especially here because we hire foreigners which sends money outside the domestic economy. That’s one way to reduce costs, which immediately impacts the bottom line. Eliminate or drastically reduce forecourt attendants.
There is no push factor to reduce the price. The only thing that can shake up the industry is if many of us convert to electric cars but that is not going to happen soon unless… incentives to full EV cars are in the works? No?
if I recall correctly… petrol station operator are not allowed to sell below government approved price …they can be fined… this minister talk bull or shit ?
All politicians talk out of their arse.
Moreso for our Pretty Hopeless politicians.
Benda yang boleh dijual mahal kenapa nak dijual murah?
Cakap kencang, cakap lagu senang…….
Apa bikin nanti?
Habuk pun tarak.
Uniquely Malaysia.
well said DS, BUT will petrol station owner DO IT? the prob is the owner wants max profit, when i was in US, petrol station can sell it lower than stipulated price to attract customer. Even in UK, car owner will pump at the lower price petrol offered by the station.
no update/news on Euro4M Ron95, will be really kick off 1/1/2020?