New fuel pricing formula announcement on Friday

PUTRAJAYA, 21 June 2017: 

A new formula for fixing retail prices of fuels would be announced to prevent petrol station operators from suffering losses if the fuel prices continued to fall under the current method.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said the government wanted a win-win formula for all parties – including consumers who would also be affected – if petrol station operators went bankrupt.

“Currently, the average distance of a petrol station from another is about 25km, so if one shuts down, it will be difficult for consumers who will need to go far to refuel.”

Currently, there are 3,500 petrol stations operating nationwide.

The ceiling prices for petrol and diesel will be announced every week as is currently being implemented, said Hamzah.

He said the new formula to determine the fuel prices aimed at stabilising the national oil industry is still being studied.

Hamzah said he had met with the oil industry players to discuss the formula to ensure that it would not disadvantage any party.

“There are people who want the announcement to be made from weekly to monthly. No, the system that we have right now will remain.”

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