Mixed reaction to weekly petrol ceiling price
KUCHING: The move by the Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK) to announce petrol ceiling price on a weekly basis rather than the monthly one will keep consumers updated with the current price.
Happy with this move, Consumers Voice Association of Sarawak (Covas) president Michael Tiong said: “A weekly update of ceiling price of fuel means consumers can estimate their spending and plan the cost of regularly purchased goods consumed on a daily basis.”
“There have been many complaints about the monthly update. Any complaints from consumers after the weekly update will be a sign they do not know the rational behind it. Consumers should know the reason for the weekly petrol price update,” Tiong said.
He suggested the government plan how to best manage resources to counter the volatile world economy and demand-andsupply factors.
“Covas hopes the implementation will not only benefit consumers but prevent misunderstanding why the implementation only takes effect in April. The weekly mechanism is a welcome move to counter public complaints on the present monthly float,” he said.
“One complaint is that the current price reflects the average for the previous month rather than the current international price. And they have started to question the higher price charged.
“A weekly update on petrol prices is a more accurate reflection of the current price. Letting petrol stations determine the selling price will increase competition among those selling different brands of oil, which will be good,” he opined.
“Moreover, the ceiling price will ensure stations, especially in rural areas, not take advantage of the situation. We hope the price will not just be decided by oil companies but retail stations are free to set their own prices to be more competitive,” he added.
Tiong was reacting to the latest Bernama report quoting Domestic Trade, Cooperatives and Consumerism Minister Datuk Hamzah Zainuddin as saying that from next month, a ceiling price for fuel would be announced weekly.
The ceiling price will likely be announced Monday or Saturday of the week to replace the present once-a-month update.
The government is determining the fuel price so it will not exceed the market price and will inform the public on what had been determined by the Petroleum Dealers Association of Malaysia.
“It is up to the petrol station retailers to work with the association and ensure no one is left out of the concept we want to put in place,” Hamzah was quoted as saying.
The ceiling price for fuel will be placed at all petrol stations throughout the country, he said.
When contacted yesterday Sarawak Petroleum Products Agents Association president Edwin Banta said retailers’ stand remains as that last month, in that they do not welcome the government’s proposal to impose ceiling price on all grades of fuel at petrol stations nationwide.
Petrol station retailers are concerned that the new proposal would create non-uniform prices of all fuels sold at petrol stations, leading to price wars among petrol brands and petrol stations, causing petrol stations to lower prices to sacrifice their short term margins.
“Petrol station retailers nationwide have expressed the need for the Ministry of Finance to continue to fix pump prices in the market, and find a solution that will not create more problems,” he revealed.