PETROL dealers will not be giving rebates on the weekly fuel pricing mechanism any time soon as they have yet to discuss the implementation process with stakeholders.

Any discount must be approved by the Ministry of Domestic Trade, Cooperatives and Consumer Affairs, said Petrol Dealers’ Association of Malaysia (PDAM) deputy president Manshor Abdul Ghafar.

He said there was no clear method on how the discount process would take place.

“At this point of time, we want to let the transition process of the monthly to weekly fuel price change take place first before implementing any discounts.

“This is the first time dealers are handling a weekly price change.

“It is still too early to gauge how much discounts can be given and the method. Maybe in a month or two, we can see what can be done.”

The ministry said last week new fuel prices will be announced every Wednesday and take effect the next day. The new mechanism came into effect on March 29.

It also said dealers will be able to give discounts on fuel prices, subject to prior approval from the ministry.

Manshor said if dealers were to give discounts, it would have to be planned and executed correctly.

“We have to plan out the details and we don’t want to burden the stakeholders, as we are all doing business collectively.

“For example, if we start giving discounts and it doesn’t match our accounts and operating costs, then it will be difficult,” he said.

The stakeholders are set to meet with officials to see how they can carry out the promotions.

“It is going to take some time before any discounts are given. At this point, the price will be the same as the government announcement.”

Manshor said the price board, which will be displayed at the stations, will only apply when dealers start offering promotions and discounts.

“We will be discussing how to display the prices when the promotions take place. Placing of the price boards at the stations is the responsibility of the oil companies, as they are the ones who decide on the price.

“Most of the dealers rent the site from the oil companies. Those who own the site will have to put up their own price boards,” he said.

Manshor said the new pricing will benefit motorists as it will be calculated weekly and in line with the current global market price.

He said previously, motorists had to wait a month for an adjustment to fuel prices.

PDAM treasurer-general Khairul Faizi M. Zin, who runs a Petronas station in Puchong, said there would be no discounts at present.

“The automatic price mechanism (APM) gives us a fixed margin to cover our operations with a little bit to spare, depending on how we manage our overheads.

“It does not take into account price fluctuations or discounts. With the current margin, I don’t see any possibility of offering any forms of discounts.

Khairul hoped that the weekly fuel pricing would fare better than the monthly pricing.

“I’m hoping for a smaller change in price (less than 5 sen). This will offer some sort of stability.

“Big jumps in prices not only affect us dealers but also customers and eventually, other consumer goods too,” he said.

Rosaniza Mohd Ismail, who has been operating a Petron station at MRR2 Safari for the past 10 years, said it was still too early to think about discounts.

“As a priority, we will continue to give the best service, utmost safety and convenience to our customers and hope that these services will beat out the price variation, if any,” she said. – April 5, 2017.