Petrol dealers seeking an 8% commission

  • Nation
  • Sunday, 02 Nov 2014

Petrol dealers are asking for an 8% commission per litre of the selling price of fuel as part of the fuel subsidy rationalisation package.

Petroleum Dealers Assocation of Malaysia (PDAM) deputy president Datuk Zulkifli Mokti says that for the past six years, dealers have been getting a commission of 12.19 sen per litre of petrol and 7 sen per litre for diesel.

“But the cost of everything, including electricity, has gone up. There is also now a minimum wage for workers,” he says.

He says when people use credit cards to pay for fuel at the petrol stations, the dealers have to pay a 1% commission to the credit card companies for the transactions.

And when the price of fuel rises, so does the amount of the commission that the dealers have to pay out to the creadit card companies, says Zulkifli.

“We are of the view that since the credit card is on percentage basis, so the commission for the dealers too should based on percentage. It shouldn’t be a fixed rate. We have requested for a commission of 8% of the selling price for petrol and diesel.”

According to Zulkifli, PDAM submitted its request to the government three years ago, and with the proposed fuel subsidy rationalisation, it is now timely to look into this again.

“Our main concern is that if the dealers’ commission is not looked into together with the whole package, there might be a breakdown of the whole system.”

He says there are additional operation costs for petrol stations to bear, including a 1% evaporation of fuel every time it goes to the pump.

“That fuel goes into thin air and nobody benefits from it but it is borne by the dealer. The government must package the dealers’ survival together in a package with the fuel subsidy rationalisation. It can’t be on an ad hoc basis. The petrol dealers must be taken care of so that they won’t close shop.”

Zulkifli believes that the services provided by petrol stations are a cost to consumers, and should be borne by them.

“You don’t get free service for buying fuel. You have to pay for the convenience you get to pump fuel at the petrol service station. Who is going to pay for the electricity and for us to maintain the pump? Otherwise people can go to a shack somewhere to get their fuel for a different price. You pay for the convenience.”

He says the main worry is that if the dealers commission is not looked into, then their cashflow will be stuck.

“And just like any other organisation, when the cash flow comes to a grinding halt, then their business will stop and we cannot afford to have stations closed because of that.”

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Transport & Safety , petrol , subsidies , pdam


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