PM to meet petrol dealers today

PUTRAJAYA: Prime Minister Tun Dr Mahathir Mohamad is expected to hold a discussion with the Petroleum Dealers Association of Malaysia (PDAM) today to discuss Putrajaya’s announcement of weekly fuel price float.

The Prime Minister said the discussion would focus on how to resolve PDAM’s concerns after the weekly fuel price float begins on Tuesday.

“Yes they came to see us, we will talk to them and we are trying to solve the problem. I am going to have a discussion with them tomorrow (Dec 31) if possible and we will find out how best to resolve the problem,” he told the media after concluding the Parti Pribumi Bersatu Malaysia (Bersatu) second Annual General Meeting at the Putrajaya International Convention Centre here, yesterday.

Recently, Finance Minister Lim Guan Eng announced that from Jan 1, 2019, fuel prices, including for RON 95 petrol, will be floated and set on a weekly basis.

The announcement has made PDAM to urge the government to raise their members’ sales commission from RM0.12 to RM0.15 per litre for both diesel and petrol, to cover the anticipated higher cost of operation following the decision.

Asked whether the government was concerned whether there would be a fuel shortage after the weekly fuel price float is implemented, Dr Mahathir said he could only give his assurance that it would be sufficient.

“You are always asking for assurance, yes I can only give my word, (but) if it is not enough what can I do,” he said.

PDAM president Datuk Khairul Annuar Abdul Aziz on Saturday said Petrol dealers have to resort to severe cost-cutting measures if the government persists with its weekly fuel price float.

He said this includes letting go of employees as the minimum wage increase will also kick in that day and cutting stations open hours to 18 hours instead of 24 hours.

He said PDAM was against the weekly pricing mechanism as dealers would be exposed to the risks of oil price fluctuations.

He said dealers had lost RM61 million in December 2014 and another RM30 million in March 2017 when the monthly and then weekly floats were introduced respectively.

“The current disparity is RM0.30 per litre for RON 95, which means an estimated RM42 million on Jan 1,” he said.