‘Fuel discounts likely for urban motorists’

 |Mar 27, 2017
File pic credit Reuters.

Petrol Dealers Asso­ciation of Malaysia (PDAM) president Khairul Annuar Abdul Aziz said fuel price discounts are likely in urban areas but said it is still to early to figure out the rates of discounts.

This is in light of the new weekly price system to be implemented with regards to fuel prices in the country.

Presently, fuel prices are fixed on a monthly basis but this will change beginning this Wednesday as set ceiling prices will be announced weekly.

Speaking to the Star Online, Khairul Annuar said petrol kiosk operators have not been briefed on the new mechanism, adding that dealers are expected to be briefed by Wednesday.

He also said it is uncertain how much discount can be offered, and for how long.

Those operating petrol stations in urban areas may be able to give promotional lower prices, he said, but rural station operators, with lower sales volume, may not be able to offer discounts as their monthly profit is between RM4,000 to RM6,000.

“An operator who is allocated 300,000 litres of petrol a month and offers a one-sen discount would see his profit go down by RM3,000. If they give a two-sen discount, they will be finished as they will have no income,” Khairul Annuar was quoted as saying by Star Online.