KUALA LUMPUR — January 7, 2019: While it is true that dealers will get more money following the government’s decision to increase the commission for them, the Petroleum Dealers Association of Malaysia (PDAM) insists that this is a non-issue.
This is because when it comes to pump fuel prices, without a government subsidy consumers have always been the ones to borne the entire cost.
“It is nothing new. The people have always been paying it. I don’t know why some would want to spin the issue,” said association president Datuk Khairul Annuar Abdul Aziz, who reminded that the recent increase in commission was the first in 10 years.
The increment was announced on Friday after PDAM met the prime minister to discuss the dealers’ lament over the government’s decision to reintroduce the weekly fuel price-determining float system.
The commission for petrol was increased by 23 per cent to 15 sen per litre whereas diesel’s was upped by 43 per cent to 10 sen per litre. This means consumers are effectively paying the dealers RM7.50 per 50 litres for petrol and RM10 for diesel.
“Commercial lorries pump a lot more, so you can expect them to pump at least three times a week or 12 times a month. They now pay an additional RM36 per month in commissions to the petrol station,” read the calculation that has been widely shared through WhatsApp.
Despite welcoming the revision, Khairul Annuar maintains the need for further measures to abate the risk of the weekly oil price fluctuation onto their business, adding that commission should be reviewed annually.
Following Friday’s decision, the retail prices of RON95 and 97 fell by 27 sen to RM1.93 and RM2.23 per litre, respectively, whereas diesel’s dropped by 14 sen to be at RM2.18.
The government is expected to maintain the price caps until it implements the targeted RON95 petrol subsidy in the second half of this year.