Business

Hajiji to meet Shell over scheduled closure of 35 petrol kiosks

Shutdown will see 500 employees in Sabah, Labuan losing their jobs

Updated 3 years ago · Published on 23 Jun 2023 1:17PM

Hajiji to meet Shell over scheduled closure of 35 petrol kiosks
In 2020, Shell had announced its plans to downsize operations in the state capital here and later relocated to Miri in Sarawak, the oil company’s original upstream headquarters. – The Vibes, June 23, 2023

KOTA KINABALU – Sabah Chief Minister Datuk Seri Hajiji Noor will meet with Shell Malaysia officials regarding the purported closure of the oil firm’s 35 kiosks across Sabah and Labuan scheduled for January next year.

“I will be meeting with Shell Malaysia chairman Siti Hurrairah Sulaiman to find out more about the situation and the fate of affected retailers in Sabah and Labuan,” he said in a statement today.

Shell Timur Sdn Bhd, the operator of Shell kiosks in Sabah and Labuan, has confirmed that it will be closing several less productive retail stations in East Malaysia to sustain the company’s performance in an ongoing review.

It was reported that the number of affected kiosks are 12 in Sandakan, ten in Tawau, six in Lahad Datu, two in Semporna, two in Labuan, and one each in Likas, Telipok, and Kuala Penyu.

The closures are set to occur on January 8 next year.

A Tawau Shell kiosk operator was quoted by Oriental Daily as saying that they had received a letter from Shell Timur Sdn Bhd last June 5 on the closure.

In a meeting with senior Shell Malaysia executives, all affected operators were informed that the firm has been making losses for many years due to the automatic price mechanism in Malaysia, which has not been adjusted since 1998. 

The closures would result in 500 employees being laid off, and may affect vendors and suppliers like transportation agencies, petrol station maintenance and repair contractors, and grocery suppliers, among others.

In 2020, Shell had announced its plans to downsize operations in the state capital here and later relocated to Miri in Sarawak, the oil company’s original upstream headquarters. – The Vibes, June 23, 2023

Related News

Events / 1d

Sarawak and Sabah play key roles in weathering climate change

Malaysia / 6d

Address security concerns and let concert proceed – former Sabah CM

Malaysia / 2w

A message from our publisher and chairman

Malaysia / 3w

Sabah leaders condemn priest and nun joke at UMNO PAU

Malaysia / 3w

UMNO-PAS relations. Are things as rosy as it seems?

Malaysia / 3w

GE16: BN-PN may get the Malay votes, but Sabah, Sarawak remain kingmakers

Spotlight

Malaysia

Immigration busts international scam syndicate operating from unused Kuantan resort

Malaysia

Malaysia prevents RM1.9b in scam transactions as BNM targets real-time fraud alerts

Malaysia

Parental involvement crucial in tackling school bullying, says PM as cases hit nearly 5,700

Malaysia

19-year-old female student strangled to death in Kuantan following quarrel; boyfriend arrested

Malaysia

Loke slams 10 Negeri Exco members for ‘backstabbing’ Tuanku Muhriz

Malaysia

Vandalism at mosque: Blaming the MADANI govt ‘unfounded and ridiculous’ (video)

By Alfian Z.M. Tahir

Malaysia

MOHE: 1.16 million PTPTN borrowers owe RM10.7b in outstanding repayments

Malaysia

Police: Statements recorded after 13-year-old student sustains severe injuries in three-storey fall

You may be interested

Business

Oil prices ease as Middle East exports recover towards pre-war levels

Business

Tabung Haji posts record RM4.64b profit on stronger investment performance

Business

Oil supply risks mount as Brent tops US$102 on threat of Middle East shipping routes disruption

Business

Middle East conflict puts Malaysian SMEs under growing financial pressure - BNM