Around 3,500 petrol stations in Peninsular Malaysia have incurred a combined loss of RM181 million since diesel pricing was floated in June, according to The Star.
Datin Hanny Julia Haron, honorary secretary of the Bumiputera Petrol Station Operators Association of Malaysia (Bumipeda), stated that the rationalisation of diesel subsidies has created severe financial challenges for station operators.
“Approximately 98% of petrol stations are losing money on both petrol and diesel sales,” Hanny Julia said. As a result, many operators have turned to convenience store operations in an attempt to make up for the loss of fuel revenue. She warned that this trend could lead to higher unemployment and reduced government tax and levy income.
She also pointed out that the closure of stations or their scaling back of operations would disrupt local economies. This would particularly impact businesses like workshops and retail outlets that rely on nearby petrol stations.
Hanny Julia called for a review of the Automatic Pricing Mechanism (APM), which has been in place since 1983. She argued that the APM should be adjusted to reflect the current economic situation. She also raised concerns about the confusion caused by dual fuel pricing at stations, where operators must buy fuel at high prices but sell it at lower, subsidised rates.
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