PETALING JAYA: Petrol dealers already struggling to break even amid a drop in world oil prices say they have lost about 70% of their normal earnings since the movement control order (MCO) took effect a week ago.
Petrol Dealers Association president Khairul Annuar Abdul Aziz said as it is, the weekly fuel changes affect their business as prices change every Friday.
“Our stock usually lasts for five to seven days. We buy at a certain price, and on Friday, the prices change again.
“But now, the prices keep dropping and it’s eating into our profits,” he told FMT.
For instance, he said, fuel sold at RM1.44 per litre was bought at RM1.67 the previous week.
While their profit is usually 15 sen per litre, he said, weekly petrol price changes eat into their margin whenever they sell at lower prices than which they bought.
With the ongoing MCO in place and without government intervention, he said, petrol station owners might start shutting down as operating costs exceed profits.
“As long as we are open, we are losing money. With the MCO, there is so much stock and hardly any sales.”
Before the MCO, he said, petrol dealers had lost 40%-50% of their profits due to unstable oil prices.
Now, he said, they are losing about 70% as people are not venturing out to refuel their cars.
He added however that most petrol dealers are happy with the 7am-7pm operating hours as it reduces their operating costs, especially in terms of electricity bills.
“That’s our second highest operating cost,” he said. “It’s now down by 50%.”
He said his members have split their workforce into two teams to tackle the Covid-19 crisis.
“If anyone from Team A is down with Covid-19 and under quarantine, members from Team B will take over.”
The doors leading to payment counters at petrol stations have also been locked, with motorists paying for fuel through the pigeon holes.
“We have hand sanitiser at the pigeon holes, and customers are told to use it before leaving the station,” he added. - FMT
For instance petrol dealers bought RM1.67 per litre n when weekly price goes up ,did they make more? always complain when losing money but keep dumb when making money.
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