The discount mechanism allows petrol companies and station operators to give discounts on the fixed prices.
A source in the Petrol Dealers Association of Malaysia (PDAM) told FMT that, for now, the prices of petrol at all stations would be the same when the government starts fixing petrol and diesel prices on a weekly basis from tonight.
The government recently announced that new petrol and diesel prices would be fixed on a weekly rather than a monthly basis.
The new prices will be announced on Wednesdays and take effect the following day.
“We were told there would be discounts we could apply for but this process hasn’t been finalised,”said the source.
The source disclosed PDAM was part of the discussions on the discount mechanism and was unsure when it would be finalised.
“Basically, petrol prices will be the same to begin with,”
Previously, Domestic Trade, Cooperatives and Consumerism Minister Hamzah Zainudin had said petrol companies and station operators who wanted to give discounts on fixed prices could do so after receiving prior approval from the ministry.
Some in the business had voiced concern that the provision of discounts might lead to a price war between petrol companies and station operators, putting smaller operators at a disadvantage.