The weekly fuel float system will allow Malaysians to benefit faster from reductions in the fuel prices but dealers fear they may lose money.
The operators are refusing to restock fuel for the next few days as they will probably have to sell it lower from Jan 1, after the weekly float for the RON95 petrol price is implemented. This is in view of low global oil prices.
PDAM president Khairul Anwar Abdul Aziz said a few more meetings were expected between the dealers and the government before a decision is made.
“We hope the outcome is favourable to all parties,” he told FMT, adding that the boycott depended on the outcome of the meetings.
According to Khairul, a large number of petrol dealers may be involved in the boycott but there is no way of telling the exact number.
Yesterday, Abu Samah Bachik, president of the Bumiputera Petrol Dealers Association of Malaysia (Bumipeda) warned that motorists might have to brace for dry pumps from Jan 1 in view of lower prices to be announced by the government.
Bumipeda represents about 2,700 Bumiputera petrol station operators. Abu Samah said the protest was necessary to ensure petrol station operators continued to stay in business.
Finance Minister Lim Guan Eng had said on Dec 24 that the retail price of petroleum products, including RON95 petrol, would be cheaper from Jan 1 to take advantage of lower global oil prices.
Khairul said it was clear under the law that dealers had to supply fuel continuously or their licences could be revoked for failing to provide fuel.
He said the dealers were not sure if the float prices would see a one-time drop in fuel or a gradual decrease as the fuel prices had dropped to US$42.71 per barrel.
“We are discussing this in the meetings too.”
Another matter being discussed is the float system itself.
Khairul said his association wanted the government to follow a monthly float system so that dealers would have sufficient time to sell stocks according to the prices they had bought them for.
They fear if the government goes ahead with the weekly float system, dealers who may have bought their stocks at higher prices may have to sell it lower if the prices drop the following week.
Later in the evening, the domestic trade and consumer affairs ministry gave an assurance that there is an adequate supply of gasoline and diesel for sale daily throughout the country.
Its secretary-general, Jamil Salleh, said both petrol and diesel were available, denying claims that consumers might face difficulties in getting both fuels by Jan 1.
He said both fuels were scheduled control items under the Control of Supplies Act 1961 since June 1975.
“Therefore the government will ensure that the supply of scheduled goods is always on the market and easily accessible to consumers at all times,” he said in a statement here today.