Petrol dealers warned against having ‘dry’ pumps

Petrol dealers warned against having ‘dry’ pumps

The Domestic Trade and Consumer Affairs Ministry says they are required to have sufficient supply at all times.

KPDNHEP officers measuring fuel levels at a petrol station off the Tun Dr Lim Chong Eu Expressway this morning.
GEORGE TOWN:
The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) today reminded fuel pump operators to ensure enough fuel supply or risk getting a fine or going to jail following reports that petrol dealers are reluctant to stock up as they are expecting the government to reduce fuel prices soon due to a drop in global oil prices.

Penang KPDNHEP director Mohd Ridzuan Ab Ghapar reminded fuel pump operators to also not close shop without permission or risk prosecution.

He said those who flout the law can be fined up to RM1 million, three years’ jail or both for the first offence and RM3 million or five years’ jail for subsequent offences.

Petrol and diesel are scheduled items under the Control of Supplies Act 1961 and under the Control of Supplies Regulations 1974.

Ridzuan spoke to reporters after conducting checks at a petrol station in Jelutong today.

He said this was part of surprise checks conducted on 102 out of 202 petrol stations in the state to ensure they complied with conditions stipulated under the retail licence for petrol sale.

Ridzuan urged motorists to report any petrol stations that claimed to have run out of fuel or closed its premises.

He said complaints could be submitted to the ministry via WhatsApp at 019-279-4317, by phone to 1800-886-800 or via the Ez ADU KPDNHEP smartphone app.

It was reported that the ministry’s 2,300 enforcement officers had been instructed to check on all 3,700 petrol stations in the country to ensure there is sufficient fuel on Jan 1.

Recently, the government announced that it would adopt a weekly float system to determine fuel prices based on world fuel prices. Lower prices are expected from January.

Earlier this week, Bumiputera Petrol Dealers Association of Malaysia president Abu Samah Bachik said petrol station dealers were reluctant to replenish their stocks as fuel prices were expected to be reduced from Jan 1.

He said dealers who bought supplies at high prices would suffer losses when the prices go down.

Petrol dealers are also unhappy about the government’s proposal to have a weekly float system to determine fuel prices. They prefer the prices to be set monthly.

Finance Minister Lim Guan Eng, however, said today that the current retail prices of RON95, RON97 and diesel would remain for the next few days pending the Cabinet meeting on Wednesday.

In a statement, Lim said this would enable the Cabinet to look into the Petroleum Dealers Association of Malaysia’s (PDAM) concerns over the government’s decision to revise fuel prices on a weekly basis and ensure the optimal way to set fuel prices.

Lim said that revising fuel prices on a weekly basis would allow consumers to enjoy savings from changes in global oil prices quicker. PDAM, however, is against the move.

“PDAM also requested that the rate for petrol dealers’ margins, a component under the Automatic Pricing Mechanism, which is used to set retail prices, be reviewed.”

Lim added that Prime Minister Dr Mahathir Mohamad would also be meeting with PDAM soon.

“The latest fuel prices will be set before the end of the first week of 2019.”

He added that the government was committed to stabilising the retail price of fuel and set prices which would benefit the people.

This, he said, meant that when global oil prices drop, the retail price of fuel will also drop to allow the people to enjoy lower prices immediately.

“But when global prices go up, to protect consumers from being affected by the increased prices, the retail price for RON95 and diesel will not be higher than RM2.20 a litre and RM2.18 a litre,” he said, adding that the prices would be maintained through subsidies.

Lim said this would be the case until mid-2019 when targeted subsidies for RON95 would be introduced, and the retail price of petrol would be floated according to the market price.

Currently, the retail price for RON97 is RM2.50, RON95 is RM2.20, and diesel is RM2.18 a litre.

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