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Group stops Caltex’s bid to close station

 | July 17, 2017

Muslim Consumers Association says Caltex has not given reason to shut the station and urges the oil company to discuss the issue amicably.


Yusof-AzmiSHAH ALAM: A group from the Malaysian Muslim Consumers Association (PPIM) today prevented Caltex Malaysia from shutting down a petrol station in an ongoing dispute between the petroleum company and some of its retail operators.

Caltex gave the operator a one-month quit notice which had expired on June 15.

The PPIM group barred the operator from surrendering the keys to the station to Caltex representatives and also prevented the company from removing the remaining fuel in the storage tanks.

“Caltex Malaysia has not given any reason why it ordered the station to close,” said PPIM special action unit director Yusuf Azmi.

“We maintain our stand not to hand over the keys and not allowing them to remove the fuel until they agree to discussions,” he told FMT.

He said PPBM had no wish to breach any regulations or quarrel with the oil company.

“We just want Caltex Malaysia to discuss the matter amicably. Today they sent representatives but they could not answer our questions on why the station must stop operation.”


Earlier, employees of Caltex arrived with a tanker at the station operated by Fauziah Ahmad Fadzil in Shah Alam and asked for the station to be surrendered to them.

Questioned by FMT and PPIM on the reason for the action, a company representative said it was on the orders of the “higher-up” and according to the terms of the contract with the operator.

“Their action smacks of bullying,” claimed Yusuf. “Caltex Malaysia has no authority to enter these premises which still belong to the station operator,” he said.

On June 20, Fauziah and 14 other operators from Johor, Negeri Sembilan, Selangor and Perak held a press conference to criticise the contract termination notice issued on May 15 giving them 30 days to vacate their stations.

Fauziah said the affected operators planned to take legal action against Caltex for terminating their contracts without “plausible reasons” and causing about 200 people to be thrown out of job.

“If we are shut down, we will lose nearly RM20 million per station. We have complained to KPDNKK (ministry of domestic trade, cooperatives and consumerism) and met the minister who was surprised by the dispute,” she said.

She said the minister agreed to direct Caltex not to cancel the contract but it still happened.

Meanwhile, PPIM lawyer Hishamuddin Hashim said Caltex’s action was unfair and a breach of the law.

“There is no court order granted to Caltex Malaysia to evict the operators,” he said.



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