Petrol dealers anticipate fuel price drop, expect losses

Petrol dealers anticipate fuel price drop, expect losses

The Petrol Dealers Association of Malaysia (PDAM) says it is expecting petrol dealers to be hit as a result of fuel prices possibly dropping by more than 10 sen in the coming March 7-13 week, The Star reports.

While the cheaper fuel is welcomed by the public, petrol dealers would have sell fuel at a loss, according to PDAM president Datuk Khairul Annuar Abdul Aziz. He said the association wants to hold discussions with the industry to limit significant price jumps to avoid dealers suffering losses.

“We were hit badly when diesel prices fell by 10 sen two revisions back. For March 6, we anticipate more than a 10 sen drop for all products,” he told the publication.

Khairul Annuar said the previous government administration wanted to limit the price increase quantum in the weekly price update to one to two sen to avoid inflation, but this policy was now in limbo with the new government. He urged prime minister Tan Sri Muhyiddin Yassin to either maintain the current pump prices or for price changes to be limited to two sen until a suitable mechanism that benefited all parties is put in place.

He said during the previous administration, there had been discussions for fuel prices to be set monthly and any price changes to limited to one to two sen, and a ceiling and floor price for stable fuel prices were also under consideration.

The current price of RON 97 petrol is RM2.40 per litre, while RON 95 is at its capped price of RM2.08 per litre. Euro 2M diesel is priced at RM2.13 per litre, and Euro 5 diesel, which costs 10 sen more, is priced at RM2.23 per litre.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Vincent on Mar 06, 2020 at 11:41 am

    That’s the problem with tongkat business! ALL CACAT AND DO NOT KNOW HOW TO PLAN FOR BUSINESS ENVIRONMENT CHANGE! The best is, let the petrol company handle all the station! gain or loss due to price change will be well handle by the petrol company!

    Well-loved. Like or Dislike: Thumb up 52 Thumb down 2
    • Habisla Msia… habisla petrol dealer. Tq Pm…

      Like or Dislike: Thumb up 11 Thumb down 0
      • Mustafa Kamal bin Hj Shamsul Bahari on Mar 06, 2020 at 4:56 pm

        This is why we need to open the lesen to everyone in Malaysia. Just like the AP, we help certain groups of people, they demand more and more and more.

        We must open the lesen to everyone in Malaysia. The profit margin of about 20 sen per litre. Highest in the region. Many stations make millions per month.

        Even smaller station make 6 figure profit.

        The worst part is, all the stations never employ locals. Nearly every station employ foreigners to man the stations.

        Every month, hundreds of million of ringgit from all the foreigners manning the stations is repatriated back to Bangladesh.

        This is quite pitiful. There should be a law that says all station owners must employ local Malaysians

        Like or Dislike: Thumb up 25 Thumb down 0
        • Dhaka 7-11 on Mar 06, 2020 at 6:54 pm

          In my area in KL, prev Gov already wiped out Dakha/Dacca employees from three 7eleven retail outlets, the 7-11 HQ now hire local mostly female to manhandle the counter.

          Like or Dislike: Thumb up 0 Thumb down 0
    • Botak on Mar 06, 2020 at 12:47 pm

      Untung jam tak cakap

      Like or Dislike: Thumb up 27 Thumb down 0
    • there is a risk in every business!!! who our poor farmers, fishermen, etc to hold talk with when they are making losses??? really idiots PDAM… why not you sell your whole station to others if really so hard life???

      Like or Dislike: Thumb up 13 Thumb down 1
  • John Doe on Mar 06, 2020 at 11:54 am

    Why should petrol dealers be protected from losses?
    When the profit is good i don’t see them requesting the government to lower the price of petrol?
    I find hawkers should be protected more than them.

    Well-loved. Like or Dislike: Thumb up 57 Thumb down 1
    • seancorr (Member) on Mar 06, 2020 at 4:34 pm

      Should protect them from profit too. Price go up also 1-2 cents then only fair to everyone.

      Like or Dislike: Thumb up 1 Thumb down 0
  • vivizurianti on Mar 06, 2020 at 12:07 pm

    If rugi (or predicted losses), petrol dealers whine and cry like big babies. Ask govt to intervene, help, manipulate market, etc.

    When untung berlambak, petrol dealers all quiet like mice, while enjoy driving new mercedes, berjoli oversea, orang gaji, etc.

    Only in Malaysia, petrol dealers and its business are guaranteed 100% for profit.

    Again, rakyat gets a big capati.

    Now, where can I apply to become petrol dealer?

    Like or Dislike: Thumb up 39 Thumb down 0
  • kedai pump minyak 3 kepala kambing on Mar 06, 2020 at 12:18 pm

    You only make lost if selling old stock of fuel purchased before price drop.

    Like or Dislike: Thumb up 14 Thumb down 0
  • hazzif on Mar 06, 2020 at 12:20 pm

    when u make profit, u keep quiet, when you “hear” potential loss, u make noise..
    later, rakyat is subsidizing all business..dem

    Like or Dislike: Thumb up 25 Thumb down 0
  • Stone on Mar 06, 2020 at 1:52 pm

    Why we never see this title ‘Petrol Dealers Anticipate Fuel Price Increase. Expect Profits’ ?

    Like or Dislike: Thumb up 14 Thumb down 0
  • Akira on Mar 06, 2020 at 1:56 pm

    You make noise we boycott you more.

    Like or Dislike: Thumb up 9 Thumb down 1
  • Dong gor on Mar 06, 2020 at 2:05 pm

    Isn’t there already an adjusted margin for the fluctuations? Every time when price goes down complaint..if not capable to run it then just close it down. Let others run the show

    Like or Dislike: Thumb up 9 Thumb down 0
  • That’s your problem, cannot sustain, quit the business

    Like or Dislike: Thumb up 10 Thumb down 0
  • Dale Ismail on Mar 06, 2020 at 2:17 pm

    When fuel price increase, harga barang lain pun increase;
    When fuel price turun, harga barang lain never turun and petrol dealers whining.
    Great, just great!

    Like or Dislike: Thumb up 15 Thumb down 0
  • Mazlan Hanafi bin Basharudin on Mar 06, 2020 at 2:53 pm

    School holidays or celebration, price drop…after that, price go up again…

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ruslan Bahari on Mar 06, 2020 at 3:01 pm

    You don’t make losses from adjusted petrol prices. Not at your level anyway. If anyone who is at risk it would be the Shells and Petronas of the world, and that too only if the prices of Crude is so low that it doesn’t cover their processing costs. I smell a rat asking for favours, given that the old guard is back.

    Like or Dislike: Thumb up 5 Thumb down 0
    • Hafiz Hisham on Mar 06, 2020 at 5:25 pm

      Actually they do. Because they BUY the petrol stocks from the franchisers (Shell, Petronas, etc). So they do make losses when petrol price drops but they also make profits when petrol price increases so give and take as long the gains and losses balanced out they have no right to complain.

      Like or Dislike: Thumb up 8 Thumb down 0
  • Unfair on Mar 06, 2020 at 3:17 pm

    So many businesses loss no complain why petrol dealings so special?

    Like or Dislike: Thumb up 10 Thumb down 0
  • C.P. MOHAN on Mar 06, 2020 at 4:52 pm

    EV P.T. anything can potentially result in losses that is what business is about that is taking risks, in other word they desire risk-free business. Sounds familiar

    Like or Dislike: Thumb up 0 Thumb down 0
  • Haters on Mar 06, 2020 at 5:00 pm

    When we are entitled for a cheap petrol and who are you want to deny that? Keep damn quiet whenever you’re making profits all year long. Just 1-2 times loss became cry baby?

    Like or Dislike: Thumb up 3 Thumb down 0
  • Francis Lim on Mar 06, 2020 at 5:04 pm

    This time the pump price for Ron 95 should reduce by 22cents a litre. Cheers, folks

    Like or Dislike: Thumb up 2 Thumb down 0
  • Ben Yap on Mar 06, 2020 at 5:28 pm

    when rugi, very fast come out press statement to announce losses. when untung, keep quiet. bising la… if this business is not for you, just tutup kedai and open sundry shop. many people willing to take your place.

    Like or Dislike: Thumb up 8 Thumb down 0
  • If you think this week’s price will cause you to lose money, then close shop until the price recovers back to a profitable number lor….bising for what? This is business, got ups and downs. If cannot compete then please close down

    Like or Dislike: Thumb up 0 Thumb down 0
 

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