Hornbill Unleashed

March 23, 2017

Weekly petrol price announcements to start March 29

Filed under: Politics — Hornbill Unleashed @ 8:01 AM

The ceiling price for petrol will be announced weekly every Wednesday night starting March 29. — AFP picThe ceiling price for petrol will be announced weekly every Wednesday night starting March 29, Minister of Domestic Trade, Cooperatives and Consumerism Datuk Hamzah Zainuddin said today.

He said the Cabinet had approved of the move after prior consultation with all stakeholders.

Speaking ‘live’ on RTM’s 5pm news broadcast, Hamzah said the Means of Platts Singapore (MOPS) system will translate to better indicate the prices for petrol and diesel according to the global market.

“After discussions with oil companies we agreed to announce the prices of petrol and diesel weekly on Wednesdays and the new price will take effect exactly at 0001 hours on Thursdays,” he added.

Currently, Putrajaya uses the managed float system based on the automatic pricing mechanism (APM) to set petrol and diesel prices according to the monthly average of global crude oil prices. The system has been in place since 1983.

Hamzah said the government found oil companies and consumers reeling from the managed float system as the increase in fuel prices can be drastic since it’s calculated monthly.

“The formula is based on global oil prices and we will make calculations that take into consideration production costs, operation costs and the profit margins for oil companies and petrol station operators,” he said, referring to the APM.

“When we used the managed float system, we found the changes or fluctuations in fuel prices were so substantial that it created concern among consumers and petrol station operators,” he said, of the difference in comparison to the market price.

Economists have said consumers could benefit from the new system as petrol dealers will have space to offer competitive prices.

Hamzah said today that companies that wish to give discounts can do so with approval from his ministry.

Earlier this month, Petrol Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz said there was dissatisfaction among its members regarding the new scheme.

He said although the association had no issue with a weekly price announcement, it disagreed with the imposition of a fuel ceiling price as it could cause a price war resulting in profit cuts among petrol station operators or see them go out of business, which would subsequently lead to a loss in job opportunities for locals too.


Source : SYED JAYMAL ZAHIID @ Malay Mail Online


 

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