KUALA LUMPUR, March 2 — Several petrol station operators in the country have been suffering losses of up to RM120,000 since the introduction of managed float system in December, according to the Petrol Dealers Association Malaysia.

Following the 25 sen increase of retail fuel prices which took effect yesterday, association president, Datuk Hashim Othman, said operators could suffer more losses in the coming days. 

“Some operators said they have incurred losses between RM30,000 and RM120,000 since the system was implemented,” he said.

“The recent increase in fuel prices will not make any difference to the dealers because the commissions and margins are fixed by the government.

“We don’t want the fuel prices to keep going up and down. It is difficult to manage  our business.”

Hashim said the current commission for petrol operators is fixed at 12.19 sen for petrol and seven sen for diesel.

He said compared to the current managed float system, an automatic pricing system makes the price more stable and it enables operators to budget the fuel costs.

“With the managed float (system), our income is fixed. However, some dealers buy at a higher price and sell at a lower price. The retail price can change every month and this means we are still at the losing end,” he said.

“We urge the government to look at the system again. The review of the price should be less predictable and not to frequent.”

Hashim said the government should introduce a percentage-based commission system which would see petrol station operators’ commission correspond with changing oil prices. 

Asked why local dealers were not able to manage their businesses compared to countries that have retail oil price changing everyday, he said unlike its neighbouring countries, the oil price in Malaysia was not based on a “free float” system. 

“In those countries, the fuel prices and profit margin are set by the oil company, making the fuel prices higher,” Hashim said.

“The managed float allows the price to be affordable for consumers. It is good for the government and consumers but not for us as it will take at least six months to recover from the current losses,” he said.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said the government had no plans to scrap the managed float system. 

He said the retail price is reviewed every month — in line with global crude oil price and currency and based on the the decision of the Economic Planning Unit (EPU), Finance Ministry as well as his ministry.

“This month’s fuel hike only affects the prices of goods and services by two to three per cent,” he said.

On Saturday, the ministry announced that retail price of fuel will go up by 25 sen with RON95 and diesel at RM1.95 per litre while RON97 at RM2.25 per litre.