The Petrol Dealers Association of Malaysia (PDAM) has said it is possible that fuel pumps could go dry after the movement control order (MCO) is lifted unless the government temporarily stops weekly fuel price updates, according to a report by FMT.
Datuk Khairul Annuar Abdul Aziz, who is the president of PDAM, said its members might not be able to meet the expected increase in demand after the MCO as they would not have the funds to stock up on petrol and diesel.
He added that petrol dealers have been heavily affected due to two factors: a significant drop in fuel prices and a 70% reduction in sales since the MCO. On the former, many dealers bought their stocks earlier just before the MCO came into effect, and as a result, paid more per litre than what it retails at the pumps in the weeks since.
Meanwhile, with many people staying at home in compliance with the MCO, there has been a lack of demand for fuel, with dealers taking a longer time to exhaust their stocks. “We were essentially giving customers a subsidy of more than 30 sen a litre. Luckily, prices have somewhat stabilised in the past two weeks,” said Khairul Annuar.
However, he noted that petrol dealers have already felt the effects, and they cannot afford to buy as much stocks now as their working capital has depleted – petrol stations usually require around RM150,000 to RM250,000 of working capital to buy fuel.
“My worry is that when the MCO is lifted and people are allowed to travel, there will be a big increase in demand for fuel, a demand that many stations cannot afford to meet. In the worst case scenario, you may see dry pumps in the early days of the post-MCO period or some dealers leaving the industry for good,” he said.
During the March 14-20 period, Euro 4M RON 95 petrol sold for RM1.82 per litre, RON 97 was at RM2.10 per litre, and Euro 2M diesel was at RM1.87 per litre. The MCO began on March 18, and in the following fuel price announcement for March 21-27, Euro 4M RON 95 petrol went down to RM1.44 per litre, RON 97 was at RM1.74, and Euro 2M diesel was at RM1.75 per litre.
The decline continued for the next few weeks, and as of the latest announcement for April 18-24, Euro 4M RON 95 petrol currently sells at RM1.25 per litre, RON 97 at RM1.55 per litre, and Euro 2M diesel at RM1.43 per litre. The third phase of the MCO will continue until April 28.
Petrol dealers are hoping to see prices remained fixed for some time instead of fluctuating on a weekly basis. “This will be good not just for us but for the entire oil and gas industry,” said Khairul Annuar, who added that there was a distinction between commercial and retails clients.
“The biggest clients among commercial buyers are airlines. That industry isn’t going to recover so soon. So the entire oil and gas industry will be depending on sales to retailers like petrol dealers. If we cannot stay afloat, then it is also not a good thing for the industry,” he commented.
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“On the former, many dealers bought their stocks earlier just before the MCO came into effect, and as a result, paid more per litre”
Ya, ya…when petrol price shoot up he dont bother to said “I bought my stock earlier when price was lower, now I am earning so much I am laughing all the way to my bank”
These PDAM boys memang tak reti syukurr….
Booohooooo. *crying in Mercedes
MCO even Petronas does not control global oil prices maybe an attempt to save a “dying” industry
Good news. More clean air for everyone.
Dry pumps means too good business, so why PDAM still wanna complain? Bad business wanna complain, good business also wanna complain? Topkek.
Don’t worry user. G will intervene like in 70’s oil embargo through Petronas.
These crybabies, just please stop talking, coming out with 1001 possibilities only when the economy is not in their favor. All those possibility they talked about, only exist if they REFUSED to manage their capital efficiently, asking for tongkat only. Last time they also talk about possibility, but I have yet to see any dealer close shop.
Again, PDAM is crying like a overgrown-man-baby.
Besides crying, they are also very good at whinning, complaining, threatening, merajuk, closing business, making “10cents face”, making claims of going bankrupt(lost count how many times oredi) etc.
Hello, PDAM. There are many other businesses that also having issues of “no-stock”, etc. However, they ain’t complaining.
BTW, if you cant understand what and how businesses work and run, please stay out of it.
Most bodoh news ever…
Well, that is what we called free-market business. There will always be ups and downs in term of material prices, profits etc. Come on, we are all affected. Are you stuck by insufficient capital? Well its time for u to sacrifice any things that can help u to regain, or seek up another business loan? Or maybe can ask you supplier another or expanding ur credit / terms limit? I think its sound fair to all of us. I guess so.
Can someone pls tell me which business has no risk. A business can earn either profit or losses. Not always profitable. When these businessmen earn losses, they create a fuss. When they earn profit, they are silent. Government, please open your eyes. Please don’t mistreat the rakyat. We have had enough. By the way, most of petrol operators are likely owned by politicians and probably some own more then 5 station per person!
When the fuel priced were above RM2.00 this people were making hundreds of thousand if not millions every year. Now, the fuel prices were only low for the past 1 month and this people are complaining for not making enough profit?
It will be good for the PDAM, oil and gas industry if the givernment were to maintain the pricing but it will never be beneficial for the normal citizens like us.
This PDAM thinks the rakyat are too stupid to know what are they trying to cook up here.
Let them die / close shop since they don’t know how to do business. Too good just to ask for handout. Have they hand back when the rakyat suffer with high price? They laugh to their bank and buy luxury cars.
PDAM reads as “padan muka”
Of all the industries, use this as an excuse for bail out. Tell that to the shopping malls throughout the country la, macam2 ada la PDAM…. bagus PaDAM tu komen
Pandai talk kok
Sounds like they are doing first time business, making stock loss for one time then no capital to restock! They better close their business for good.
For PDAM. “…kalau u tak suka, you boleh tutup business…”
I learnt this technique from our prominent politician….