KUALA LUMPUR – For Budget 2022, petrol dealers are hoping for better commission rates for retail fuel.
Petroleum Dealers’ Association of Malaysia (PDAM) president Datuk Khairul Annuar Abdul Aziz said that this includes making the commission on the sale of diesel equal to that of regular petrol.
He proposed that the commission on diesel be raised from 10 sen to 15 sen per litre as the price of diesel is currently higher than petrol, and said that the commission should at least be on the same level.
“Back in the 80s and 90s, the retail price of diesel was much lower than petrol, hence the commission is much less,” he told The Vibes.
“Since the APM (automatic pricing mechanism) is under the government's control, the protection of dealers’ commissions should be prioritised, as oil companies are eating into our commissions.”
Khairul said that the government could instead reduce the oil companies’ portion of the commission under the APM, which is almost 20 sen per litre for petrol, and 17.25 sen per litre for diesel.
He also said that the government should hold annual reviews of the APM with the dealers represented by PDAM and other stakeholders as operational costs were rising each year due to the implementation of the minimum wage and other factors.
Shell Petroleum Dealers’ Association Malaysia president Datuk Abd Wahid Bidin said he hoped that Shell’s retail agreement remains status quo next year, given the Covid-19 pandemic and uncertain economic outlook.
Echoing Khairul’s remarks, Wahid said that balancing the commission rates between petrol and diesel should be considered as the price of the latter is currently higher.
The Finance Ministry announced yesterday that the retail prices of RON95 petrol and diesel will remain unchanged at RM2.05 and RM2.15 per litre, respectively, until November 3.
Wahid pointed out the 5 sen difference in commission between diesel and petrol has contributed to imbalances.
He added that East Malaysian states are the ones most affected by petrol prices.
"Sabah and Sarawak really need these increments because the sale of diesel in those states are higher than petrol by about 50% to 60% of the total volume, compared with 10% to 20% in the peninsular states.”
He also said there are currently more than 1,000 Shell petrol dealers nationwide who will benefit from the revised commissions. – The Vibes, October 28, 2021
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