Malaysia: Petrol Dealers Association Wants Curb on New Petrol Stations
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Wednesday, 07 May 2008 |
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THE Petrol Dealers Association of Malaysia (PDAM) wants the government to
stop issuing approvals to oil companies for new petrol stations in the
country as part of efforts to reduce fuel subsidy and curb profiteering. In a statement, the PDAM said opening too many new petrol stations will result in the government increasing the fuel subsidy.
"Opening of many new petrol stations is the oil company's intention to
provide service and expanding their market share. But to the oil
companies, the more they sell the more they profit, while to the
government, the more oil companies sell, the higher the government
subsidies," it said. It said the government should immediately freeze all approvals for new petrol stations.
"It should be a voluntary effort by oil companies but if they delay
this effort, the government should enforce it. Oil companies have to
immediately cooperate with the government and stop all construction of
new stations," PDAM said.
Providing incentives to consumers to purchase fuels and opening petrol
stations for 24 hours will also result in increase in government fuel
subsidy. All the above actions of overselling raises fuel subsidy,"
PDAM said. On the opening of new stations, PDAM said the
Domestic Trade and Consumer Affairs Ministry needs to be firm and
freeze all issuance of new petroleum dealership agreements or PDA
licen-ces for a period of five years with immediate effect.
It also wants the government to stop oil companies from offering incentives to consumers to buy fuel.
"Now oil companies are giving all sort of incentives to the consumers
to encourage them to buy more fuel. This encourages wastages and
unimportant fuel purchases. The end effect is the oil companies' fuel
sales volume goes up and the government pays higher fuel subsidy," it
said.
The association said restricting the operating hours of
petrol stations by opening them from 6am to 11pm will also lower fuel
subsidy.
It said the fuel to generate electricity by Tenaga
Nasional Bhd is also subsidised by the government, which would be
reduced if petrol stations do not open at night, adding that about 90
per cent of the petrol stations operate 24 hours.
PDAM said the
government spends about RM19 billion per year on fuel subsidy, and this
figure will continue to rise in line with the rise of oil price which
has reached US$120 per barrel.
PetrolWorld 060508 Source: BusinessonLine MY
Editors Note:
Does this mean the next step will be to reduce the number of cars sold to consumers or/and the number of cars allowed on the roads?
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