PETALING JAYA: The Petrol Dealers Association has urged the government to revise the fuel price on a weekly basis as the monthly managed float system could cause them to incur huge losses.
Deputy Finance Minister Datuk Johari Abdul Ghani said the petrol dealers have complained to him that the system has adversely affected the volume of oil supply sent to them.
He said currently oil companies would distribute their supply to the petrol dealers based on their forecasts for oil prices.
"A lot of oil companies now use this opportunity by sending the petrol dealers oil supplies in large volume at the end of each month if they expect the price to fall the following month.
"If the fuel is expected to increase in the next month, they will then reduce the supply," he said in a statement on Thursday.
Johari claimed that if this matter is not managed properly, it could cause more than 3,200 petrol dealers such as Petronas, Shell, Caltex, Petron and BHP to experience a loss of 70%.
To avoid this problem, he said the petrol dealers have suggested that the fuel prices be revised once a week with a maximum price difference of 5sen, so the price change would not be too "noticeable" compared to the previous price.
"This will benefit the consumers, the petrol dealers and the oil companies regardless what the market price is," he said.
The retail price for RON95 petrol and diesel was fixed on a managed float system and has been in effect since Dec 1 last year, following the removal of all fuel subsidies.
Under the managed float, similar to that now used for RON97, retail prices would be based on the monthly average world price of crude oil.
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