70 Per Cent Of Petrol Stations Operated By Bumiputera, Says Muhyiddin

According to Bernama, our Deputy Prime Minister, Muhyidding Yassin was reported to have said in a speech last night that almost 70 per cent of petrol stations in Malaysia are being successfully operated by Bumiputeras due to the initiative and efforts taken by the government.". (Ref: Bernama, 6th November 2009. 70 Per Cent Of Petrol Stations Operated By Bumiputera, Says Muhyiddin) As a departure from my usual style, the complete news report is reproduced below.

70 Per Cent Of Petrol Stations Operated By Bumiputera, Says Muhyiddin

KUALA LUMPUR, Nov 6 (Bernama) -- Deputy Prime Minister Tan Sri Muhyiddin Yassin said almost 70 per cent of petrol stations in Malaysia are being successfully operated by Bumiputeras due to the initiative and efforts taken by the government.

The government has been carrying out a more streamlined license distribution system in line with the Petroleum Development Act, he said.

He said the government has been aware of the many challenges faced by the petrol station operators in running their respective businesses especially during the economic crisis.

Muhyiddin also commended them for carrying on their businesses well despite the challenges.

"With this success, I hope this business will continue to expand and be inherited by the coming generation," he said in his speech at a dinner organised by the Petrol Dealers Assocation of Malaysia here Friday.

Muhyiddin also called on the petrol station operators to continue to take the initiative to provide more convenient services environment for their customers.

He said they could also help the local small and medium sized companies by giving them the space to market their products in their petrol stations.

-- BERNAMA

Almost a month ago, on 16th October 2009, our Prime Minister Datuk Seri Najib Tun Razak also mentioned the government contribution to the petrol (and energy) industry during his speech at the UMNO general assembly. Here is an excerpt from our Prime Minister's speech:

The fact is that, whether you realise it or not, the Government has done so much for the people. For example, in the transportation and energy sectors, the Government has provided RM9bil for petrol, LPG and diesel; RM2bil for a cash rebate programme; more than RM600mil for toll compensation; RM150 for electricity; and another RM45mil for flights to rural areas and trains to the East Coast.

(Source: The Star Online, 16th October 2009. Upholding Tradition, Realising Changes.)

The speech can also be seen in our Prime Minister's 1Malaysia blog (click the link). (Ref: 1Malaysia.com.my, undated. Speech: Upholding Tradition, Realising Changes.)

It may be noted that our beloved Deputy PM was making that statement at a function organised by the Petrol Dealers Association of Malaysia (PDAM). From a 2005 article by Bernama, we find the following statement:

PDAM is an affiliation of all the petroleum brand association of petrol dealers in Malaysia. It consists of ESSO, Mobil, Shell, Petronas, BP and Caltex.

(Source: Bernama, 3rd October 2005. Action Will Be Taken If Losses Continue, Say Petroleum Dealers

Interestingly, the same 2005 Bernama article was about the dissatisfaction of petrol dealers in Malaysia, and how much they were getting for each litre of petrol sold. The relevant bits from the report:

Alang said dealers will get eight sen sales margin per litre petrol sold and 0.035 sen per litre in diesel.

Tan Sri Muhyiddin Yasin's speech had touched on this topic, when it was reported on the late news at TV3 (at 12 o'clock this morning). He mentioned that the sales margin for petrol dealers had increased since 2008. This is in fact true. A write up on the Automatic Pricing Mechanism can be found on local blog The Malaysian Life. The relevant bits show that:

iv. Oil companies' margin

Margin or profit of oil companies is fixed at five sen per litre for petrol and 2.25 sen for diesel.

v. Station dealers' margin

Margin or profit of dealers is fixed at 12.19 sen per litre for petrol and seven sen per litre for diesel.

(Source: The Malaysian Life, 16th February 2009. How The Government Determines The Price Of Petrol)

The post on the APM mechanism by The Malaysian Life above is good reading.

The sales margin for petrol and diesel had been raised in June 2008. Singapore-based Asiaone in its motoring segment, reported on the matter:

The government has announced an increase in the commission for some 3,500 petrol and diesel dealers. This immediately led to the Petrol Dealers' Association calling off its "no credit card" advisory to its members.

Effective yesterday, the new commission rate for petrol is 12.19 sen per litre and seven sen per litre for diesel, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said.

Previously, the commission for petrol was 9.5 sen per litre and diesel 4.5 sen per litre.

Petroleum Dealers Association president Abdul Wahid Bidin described the new commission rates as acceptable.

"We accept it with gratitude. With the new rates, we can at least survive," he said when contacted by the New Straits Times.

(Source: Asiaone Motoring, 26th June 2008. Commission raised for petrol, diesel dealers.)

I have been unable to locate the website for the Petrol Dealers Association of Malaysia (if there is one). Can anyone drop me the link to the website? Interestingly enough, Shell petrol dealers in Malaysia also have a blog, but it has not been updated recently.

Update (9th November 2009):

In a report on NST, dated 7th November 2009, it was indeed reported that the Deputy Prime Minister, Tan Sri Muhyiddin Yassin, had mentioned the sales margin of petrol dealers had increased, "from 9.5 sen to 12.19 sen per litre of petrol and 4.5 sen to seven sen for a litre of diesel from June last year." (Ref: NST Online, 7th November 2009. Licence cheer for petrol station owners)

In the same NST report, the Deputy PM was also quoted saying that:

1. Petrol stations could be turned into a kind of marketing grounds for local products, manufactured by Malaysian SMI;
2. Petrol station operators have to ensure that facilities (including toilets and surau/prayer rooms) at their premises are well maintained;
3. Some 3,200 petrol dealers can now convert their business licences from sole proprietor businesses to private limited companies;
4. Petrol dealers had been asking for years for their business licences to be converted, so allow their children to inherit the business.