With fuel prices expected to decline further amid a global oil war, the Petrol Dealers Association of Malaysia (PDAM) has suggested price floors be introduced for petrol and diesel that could be beneficial to its members, consumers and the government.
In a report by Berita Harian, PDAM president Datuk Khairul Annuar Abdul Aziz said that with the price floors, any proceeds from a sharp drop in oil prices that would also affect fuel retail prices could be retained for future use.
Using the current situation as an example, where crude oil prices are at around US$35 per barrel, RON 95 petrol should be priced at RM1.32 per litre instead of RM1.89 per litre currently. The current price ceiling for RON 95 petrol is at RM2.08 per litre, while it is RM2.18 per litre for Euro 2M diesel.
“Instead of lowering the price by 57 cents per litre, the government could only lower five or 10 cents a litre, the excess can be kept by the government to be used as a subsidy when crude oil prices jump to higher levels in the future,” said Khairul Annuar.
“At the same time, petrol station operators are not caught off guard by sudden declines and are still able to absorb losses as it doesn’t involve large cost [increases],” he added. The PDAM president also pointed out that the petrol station industry could face a loss of up to RM150 million if the government reduced fuel prices (RON 95 petrol) by 57 cents a litre, which could cause smaller stations to close.
“Our income is around 10 to 15 cents a litre. If it goes down or increases by five cents, for example, our operations would not be heavily affected. It is also fair because price fluctuations are stable and not too large,” said Khairul Annuar.
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hahaha… want tongkat?
So shameful. Like this, better open up the lesen to all Malaysians or even to Mainland people who can give better service and competition.
All the time wanting bantuan. How sad
Why does PT want to give them free publicity? Just ignore them and move on.
So are you suggesting for it to no longer float according to market rate?
You can’t have the cake and eat it.
Whether prices go up or down, PDAM gets the highest commission in the world for petrol sold. They earn over RM20 sen per litre.
Most big stations earn RM millions per month. The smaller stations earn no less than 6 figure per month.
During prices going higher, they make even more, they make millions for months and years even.
How greedy can they be?
Balls, in that case have ceiling price on both ends of the spectrum. It is what it is, ce la vie, deal with it.
It is a law that one person can own only 1 lesen for station. But as we have seen, there are owners that own even 16 stations each.
They reap so much of profit. Yet, they demand Gomen to give them compensation when prices go down.
When prices go up, how come they never contribute to tabung that will help them when prices go down?
Where is there such a law mate? This is a free market country, not some Democratic Republic of Pakastan. They can make noise, its their free right but its also our free right to ignore them.
I rather keep that money in my pocket. I make me feel safer that way. Keeping in Government pocket ?? Nah…. money always lost when we need to use them. Tq
So shameful. This is like AP guys. Always given a free ride in life and yet, they ask for more, more, more and more.
You can go fly kite.
Why not propose ceiling price instead?
This is rarely happen case. Please consider the consumer first before your “members” benefit. When price hike all goes its normal this & that according to market bla bla.
stupid PDAM.. whenever prices drop they are always so noisy with all excuses but when prices rise they are dead silent
Let’s agree to disagree.
PDAM…rakyat will only pay market price today.If oil is so super abundant that it is only US 10 dollars a barrel,the rakyat will pay only that.If you cannot take the heat,there are plenty of others who has the capital to absorb some initial losses and bounce back when prices shoot up.
If PDAM only want a “GUARANTEED UNTUNG BUSINESS”,they should start face masks factories.Sure untung,cos the haze from indonesia will return by JUne/July.
The mentality of asking for bailouts is still very prevalent in PDAM.
Datuk Khairul Annuar Abdul Aziz is Petronas Petroleum Dealers Association of Malaysia means GLC company, that why their getting richer and richer.
He also represents Petron and Petron milik siapa ya?
greedy kiosk operators….
Singapore gov has practiced this long time ago. Why our gov don’t want to implement???
Are you trying to ask government to bare the price difference of your old stock? How could it be beneficial to the consumers and the government?
Sure no problem. RM0.50/L as the price floor and RM1.50/L as the price ceiling. Mau?
Already for nearly 2 years uols have been profiteering from PH broken promises of cheap fuel so stop complaining. Your friends in the Government are gone. That era of reaping profits are over.
time arga minyak naik tak bising pulak
That is the beauty of business, you lose a bit but gain a lot. I don’t know any petrol dealer that does not own many properties and drive expensive cars. For time being let the consumers enjoy the benefits of low petrol price. Everyone has his or her view but as a consumer I wish the price is allowed to fluctuate accordingly and eventually the government can remove the subsidy.
Typical tongkat behavior… After all these years of profiteering, now suddenly cannot tahan already… SMH
Banyak cantek! business mau always untung where got road. Go do other business lah weyy.
PDAM sudah datang lagi…. as expected they will say petrol stations will close. bermacam-macam drama.
Time untung pon xingat dunia…
Or maybe reduce subsidy
It make sense, though PDAM is a pool of crybabies, asking for transition change capped at 5 cent. Even if the price goes down by 20 cent, those operator aren’t likely to close shop. Other than selling fuel, they also have a retail shop with very high traffic where people continuously stop-by when refueling. I have worked at fuel station where their retail sales revenue far exceeded their fuel sales revenue, and its not really a big operator even.
ariari mau tongkat ali
Why not also have ceiling price? You don’t want to rugi besar, we don’t want you to untung besar, fair mah.
WHY ???
WHY ???
Price increase …. Consumer …PAY UP !!
Price Drop ….. Dealer …. Collect !!! Consumer – Still Pay Up !!!
if they get fixed 10sen to 15sen/liter.
i wonder how dealer actually make lost despite lower petrol price.
they seems like making profit based on volume, not petrol price.
I think it’s the loss from old stock. Say a station can keep 100k liters in their tanks.. only sell 50k liters this week. Next week price drop 20 Sen, means they are taking a loss of 10 Sen per liter on their 50k liter reserve. This is assuming they make 10sen per liter anyhow according to fixed weekly prices. Then you have overheads like staff, electricity, rent, maintenance and financing costs (assuming the operator did not pay in cash for everything when they started business). While I agree the consumers should benefit from the low oil prices, there should be some sort of mechanism to stop prices from going on a free fall at the pumps. Same should happen when there is a spike in prices. Hopefully the ruling government can work out a program in the middle ground
Kalau BN boleh turunkan minyak RM1.50 ke bawah. Tau lah PH tipu
now PH is government?
boooo..boooo
This is the good time for people to see true face.. If new Government only reduce 10 cent, we knowing that government and someone is making more on this! The real price should be RM 1.32!!!
Ya the excess can be kept as subsidies but later mysteriously siphoned to YB all family on board trip to overseas and jewelry handbags purchased…
The petrol prices are impacted all around the world, not just in Malaysia. I think being in such a business, they have to anticipate the fluctuations that could happen. It may not be ideal for them, but it’ll surely benefit the consumers ‘for the time being’. Eventually, prices will go up again and these petrol dealers will not jump to defend the consumers. Instead, they will be laughing their way to the bank.
Other industries and sectors are impacted by the Covid-19 outbreak but we didn’t hear them complain talk about it much. Some of them still absorb the losses or even reduce their price further to get more sales.
Everytime price go down the association will spoke up on how to protect the losses.. everytime.. what they need to understand is to save the profit when the price is increased.. so no need to bising2 bila price down? the public users never bising bila bayar petrol mahal, pengguna rugi.. now bila petrol station kurang untung, bising giler..
You dont make noise when 2.08… now is rakyat benefited then you eye red red… shut up and give me RM1.32 petrol….
Price increased diam diam ubi.
Now price down bising here n there.
“With fuel prices expected to decline further amid a global oil war, the Petrol Dealers Association of Malaysia (PDAM) has suggested price floors be introduced for petrol and diesel that could be beneficial to its members, consumers and the government.”
Benifit the gomen and consumer my ‘punggung’ lah.
The ceiling fuels price practices took government or agency few months or weeks to plan, prepare and implement. Flooring price will also took some time to works and the world crude oil price on it’s down trend should be temporarily or rather a short term, few months situations.
What I would like to propose is petrol dealers should have a table type of earnings, ie, fuel of RM2.00 to RM2.50, EARNING OF RM0.XX
RM1.50 TO RM2.00, EARNING OF RM0.YY
………
What a joke!
Did they propose ceiling price when oil prices were high?
Why don’t those petrol kiosk owner saving some fund while crude oil bullish?
Can suggest, but eventually consumers decides since there are options including EV.
Should tag that price as RM1.32. When rakyat pay less for petrol, they will have extra money to spend in market. The economic need cash flow in and out. Cost of living also will be lower.. Aduih… Pening kepala lah….
If u can’t sustain the business, go do something else. This is what business all about. U want guarantee profit , put your money in FD
I really not understand how the system work, if oil price up, then our country should make a lot of profit and can keep for subsidy if oil price down, meanings if oil price up, indeed good news for the rakyat…but now oil price up or down also rakyat suffers!!! U know what im trying to say, right…
when the price increase they will just shut their damn mouth and now when the price went down they will tell whole world about their lost.
I’m quite sure the dealers have been making money every week for at least the past 2 years (~100 weeks). Suddenly, they may make a loss for 2-3 weeks and whine about it.
If it’s really not making money, surrender the dealership. Other people would be interested to take over your business that’s “losing money”.
RM1.32
to PDAM I can give u my middle finger !!!