Many laud move while some have reservations

PETALING JAYA: The government’s move to adopt the weekly float system for fuel has been well-received, although some are worried about the uncertainties it may present.

Federation of Malaysian Consumers Associations (Fomca) secretary-general Datuk Paul Selvaraj welcomed the move, saying with fuel prices to be reviewed on a weekly basis, “consumers will immediately benefit.”

He said the move would have a positive impact on the overall national economy.

“The weekly float system would not only affect fuel prices but also the general cost of goods,’’ he added.

Malaysian Muslim Consumers Association (PPIM) lead activist Datuk Nadzim Johan said the reduced fuel prices would benefit the people greatly.

“Consumers do not know how fuel prices are derived, they just want it to be as cheap as possible,” he added.

He, however called on the government to make headway in developing the new petrol subsidy system for targeted groups.

The Petroleum Dealers Association of Malaysia (PDAM) said although the government’s announcement showed that its concerns had been addressed, ongoing discussions between both sides must continue.

“The announcement by the government does give us some breathing space to continue with our businesses.

“But there are still many challenges, mainly on the weekly changes in prices that can lead to losses and uncertainty in our profit margins,” PDAM said yesterday.

The floating system, it said, had become an “element which complicates the industry”.

“We hope to be able to continue discussing the weekly price mechanism so that the supply of fuel to the people will not be affected.

“We hope the government will continue opening its doors for discussion with PDAM so that this matter can be further looked into and the best formula can be arrived at for all parties - the consumer, petrol dealers, the government and the oil and gas companies,” said PDAM.

Kuala Lumpur-Selangor Lorry Operators Association secretary-general Alvin Choong described the announcement as “a New Year’s gift” for the transport industry.

“We support the move. The transport industry should be prepared, and be able to adjust to such a mechanism which is practiced in many developed countries,” he said.

“It is good news for us as the price is lower now. We cannot adjust our freight (charges) too frequently.

“When the fuel price is lower, we will make more money and vice-versa,” he said.