With the retail price of RON 97 petrol having hit an all-time high in Malaysia, reaching RM4.70 per litre two weeks ago, the question isn’t whether sales of the fuel have dropped, but rather by how much.
We now have a rough idea. According to Datuk Abdul Wahid Bidin, chairman of the Shell Petroleum Dealers Association Malaysia (SPDAM), sales of RON 97 started plummeting when its retail price exceeded the RM4 mark, and have now fallen by at least 65%, as China Press reports.
“Since it rose past RM4 a month ago, sales of RON 97 have decreased significantly. However, this doesn’t really impact the revenue of petrol stations, as consumers of the fuel will switch to RON 95,” he said. He added that be it RON 97 or RON 95, the profit margin gained by dealers from the sale of petrol is 15 sen per litre, so even if the increase in the price of RON 97 leads to a decrease in sales, dealers still earn a commission from the sale of RON 95.
He added that the increase in the price of RON 97 doesn’t only impact users, because if people use credit cards to pay for RON 97, petrol station operators make less profit. “When customers use a credit card, the operator has to pay a 1% transaction fee per litre of petrol, which means that the higher the petrol price, the higher the fee we bear,” he explained.
Meanwhile, Petrol Dealers Association of Malaysia (PDAM) president Datuk Khairul Annuar Abdul Aziz said the drop in RON 97’s sales volume has been going on for a while now, having begun dropping noticeably after its price went past the RM3.50 per litre mark.
“This is nothing new. Customers had already started switching to RON 95 before, so the phenomenon of switching is not so big now. As for how much national sales of RON 97 have dropped, I can’t say exactly by how much. Some petrol stations sold 2,000 litres of RON 97 a day before, and now are only doing 300 litres,” he told the publication.
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so at 4.70, credit card companies buta buta make 4.7 sen out of total profit margin 15 sen. thats crazy
You dont know meh? Credit card banks are having windfall excessive profits.
My Ducati bikes drink RON97 only. I dont hv a choice
Ya Ya, Botul
Is alright. Government can also subsidize to include these low-ballers switching from RON97
SO? You expect credit companies to give you service for free? Manada such business model lahhh!!! You want free credit go get from your PAMA brader.
Ada T35 lagi
OK lah PETRONAS making money
Now the 65% gone from RON97 to RON95 will burden gomen even more subsidy(every liter >RM1.70)
So to resolve traffic jams and promote public transport usage, gomen please market-float RON95 @RM4.50
Why need to, open border more and more Sinkie cars will come in to pump unsubsidised RON97 win win for all even for their monkeys.
Bloating fuel expenditure was due to subsidy. Every litre of RON95 will cost RM1.70 (early April news) to the government. So if U remove subsidy, whatever foregin vehicles pump also OK
U must be smoking smthing too strong. If we float Ron95 then everybody can pump it, even SG cars, so of course they will then switch from restricted only Ron97 to pumping cheaper Ron95. We will lose more money in that sense as more % will pump the cheaper fuel and might have certain cases of Ron95 running out like during Raya. That is just plain dumb.
Our RON97 is non-subsidized fuel. If U add-back the subsidy to RON95, U’ll find it shall price somewhere RM4.50 So literally govt is paying more for every litre U buy RON95 now
Our EURO4 fuel is cheaper than EURO6 in SG
The cost of petrol is less than RM0.2/litre. At RM2, petronas still minting. Go to kuwait etc and see what their oil prices are. Cheaper than water. All these subsidies are needed to fund for corruption bro and not for actual cost of petrol
Tahniah pengundi Umno BN. Minyak mahal, Barang Naik.
R u dumb or what? This refering RON97 which is not relevant to us rakyats except the T20. Stop whining when inflation is still under control here try go Sri Lanka where you can get nothing.
Yeah, dont you know Msia inflation shooting up fast? Chicken aka the most important food for msia is scarced and pricey. The latest lowest income RM1500 for workers is pushing the manufacturers and companies to cut workers allowances at larger margin which offset the benefit for the workers , at the same time pushing to increase goods and service price due to high overhead that lead to even more inflation. The Ron95 price subsidy can not be sustained eternally, money must come frm either way. They will eventually increase income tax, increase interest rate, reintro GST and increase GST quicker. All these will contribute to market going down, ringgit deflate which is happening now, and rakyat suffer especially the B40. Eventually, China will be consulted and become our big bro like Sri Lanka. And are we so low to be compared to Sri Lanka? Then why not compare to Solomon Island?. No problem, Msian chinese speak mandarin and adopt chinese 5000 yrs old culture right? Can even marry some China lengluis and balik kampung right? Oh..a kampung in China is mire modern than KL ya know. Lol
Did u know that malaysia facing a mere 4.x% inflation while World Bank estimated the global average inflation is 8.x% ? Yeah the outside world is much worse, much much worse. So it is true about kataks dibawah tempurung, those who are not aware about the outside would think it is bad here. Well good for you guys, border has reopened and you can go see the real world conditions post Covid. Try it..
Wow ini hari menang esok kita turun harga 1ringgit perliter..any idea who tell this pergi sorok belakang buntut atok..
Apa yg buta, you want to borrow ur money to other people foc.. be my guess
Nothing crazy or new…fee based income is one of the easiest to earn.
Anyway, if a petrol station only sells petrol then it will be just surviving. Main profit of the station is from their convenient shop and tenants.
Bagi sabsidilah
This is why we cannot improve as a nation. Tongkat culture. A bit a bit want subsidy la, want tax break la, this and that.
My SAGA BLM 1.3 EFI Pinks like crazy with RON 95 So Did My MB CLK 230K but not so badly since its got a built in Knock sensor and Auto retard built in to the ECU, but Ron 92 in Australia and 93 in Thailand are fine without these issues … so What is the actual Octane Rating that we are using RON 95 or something way below
Maybe try a different brand of fuel? My Civic FC has engine knocking issues at high RPM for some reason with Caltex RON95, now trying Petronas RON95 and it seems to like it more.
Bring on RON91, cheaper still and benefit everyone. Most family cars can use . Simple solution
Malaysia is already lucky to be able to get cheap petrol compares to many countries.
dont forget our car prices one of the highest in the world also
malaysi government is lucky to have u.
My neighbour still fill up his King Myvi with RON97 LOL…
Well, so does my wife. Why?
She perceives it to be better for her German car. She also decided so because her travel distance per week is something along the lines of:
a. 10.4km to and fro for work (twice a month only as the company adopted a WFH regime from MCO1.0)
b. 120km a month for some personal travel, usually after those two days of work for social purposes
She sometimes goes for more than a month without refuelling. The price of her next fill up is almost always a different price.
To each his own. Some think the fuel will protect their MyVi engine better.
Frankly to those that understand, higher octane gas are only suitable for high pressure combustion engine.Its is not meant to protect the engine. What it means is the petrol combust at a higher pressure due to certain additives to prevent early combustion in performance cars that may lead to knocking. Hence for normal sedan cars, RON 95 and below is more suitable.For normal car that uses RON97 will likely get knocking on the head.
If Ron95 subsidies are for Malaysia citizens, what are company trucks pumping today? Non subsidised fuel?