A total of 3,500 petrol stations in Peninsular Malaysia have sustained losses amounting to RM181 million since the floating of diesel fuel pricing in June this year, reported The Star.
According to Bumiputera Petrol Station Operators Association of Malaysia (Bumipeda) honorary secretary Datin Hanny Julia Haron, the subsidy rationalisation for diesel fuel in Peninsular Malaysia had faced operators with a severe economic challenge.
“About 98% of petrol stations are reportedly suffering losses from petrol and diesel sales, forcing many to shift their focus to convenience store operations in a bid to offset declining fuel revenues,” Hanny Julia said, adding that the current trend could lead to higher unemployment rates and reduced government revenues from taxes and levies.
Closures of stations, or scaled-down operations would also disrupt local economies, which will affect businesses like workshops and other retail outlets, she added.
“The APM must be aligned with the national annual budget to reflect today’s economic realities,” stating her view that the automatic pricing mechanism (APM), which has been in place since 1983, needs to be reviewed. Hanny Julia also raised concerns for confusion and instability due to dual pricing for fuels within the same storage tank, as operators are forced to buy fuel at high prices but sell it at lower prices.
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AI-generated Summary ✨
Comments mainly discuss the impact of diesel subsidy rationalization on petrol station operators, with many arguing that the reported RM181 million loss is actually a reduction in profit exacerbated by illegal smuggling and illegal sales. Several commenters believe the phrase "loss" is misleading and point out that many operators still make profits or simply experience decreased earnings. Critics also suggest that some operators have benefited illegally from subsidies, and that their complaints about losses are exaggerated or unjustified. There is skepticism about the severity of the economic challenge, with some asserting that the industry has long been dependent on subsidies or illegal activities. A few comments mention potential future closures of petrol stations and the shift towards EVs, viewing the rationalization as a necessary step to curb smuggling and illegal trade.