Government Proposal to Set Ceiling Price

Post date: Mar 22, 2017 5:00:29 PM

22nd of March: PDAM was informed of the good news

No Price War!

13th of March: PDAM meeting with RS Division

Again PDAM reiterated that price war will kill many low volume dealers. PDAM also highlighted the volatility of the market price when its averaged weekly.

9th of March 2017: YB Minister meeting with OilCo

YB Minister request price war to only use OilCo’s margin. OLF not to be increased anymore without KPDNKK approval. . Taskforce to be formed to further refine weekly ceiling price mechanism.

8th March 2017: PDAM meeting with KPDNKK RS Division

Discussed concerns on potential inability to protect dealers margin in case of price war amongst OilCo on daily basis & highlighted other concerns. Also further discussed how Dealers mmargin could be protected, and to lower other costs.

7th March 2017: PDAM Meeting with YB Minister KPDNKK. PDAM presented in detail all the possibilities that could happen if the government is to proceed with Price Ceiling induced price war. PDAM stance is that it is against any price war.

YB Minister acknowledge PDAM's views and concerns and informed that there will be a meeting between himself and the Oil COmpanies this coming Thursday.

YB Minister also requested PDAM to have a meeting with RS Division of KPDNKK the following day, to discuss further details on our request, concerns as to provide all data and documents requested by YB Minister.

We are not at liberty to divulde the details of our concerns and requests pending the meesting between YB Minister and the OilCos.

However, the YB Minister gave assurance that the dealers interest will be protected (No charges such as OLF and changes to the agreements between dealers and OilCo will be allowed without the Ministry's consent). YB Minister also promised that whatever mechanism being adopted by the government will not result in any losses faced by the dealers and the dealers' margin will not be touched.

6th March 2017 - PDAM had a second session with PMO on the Ceiling Price Mechanism

Perjumpaan kedua bersama pihak Pegawai Khas dan Ketua Bahagian Ekonomi PM berkenaan harga Siling di Parlimen. PDAM diwakili semua Brand Association yang rata-ratanya masih tertanya-tanya tentang perkara ini.

Selari dgn petisyen yg kita tandatangani, kami masih kekal dgn pendirian bahawa kami tetap mahukan

1. Kerajaan untuk menetapkan harga pam

2. Komisen kita di semak semula dan di pertahankan

3. Layan diri sepenuhnya

4. Pengurangan caj kad kredit

Pihak PMO akan meneliti perkara ini semula dan mereka juga akan cuba mendapatkan penjelasan lanjut agar semua pihak mendapat gambaran sepenuhnya.

Selanjutnya, PDAM akan berjumpa dengan YB Menteri KPDNKK pada 7hb Mac 2017, 2.30 pm bagi mendapatkan penjelasan lanjut.

3rd March 2017 - PDAM & PESAMP met with KPDNKK to discuss letter and petition submited. Our stand is:

  1. Government to set pump price as in current practice. The frequency of price change to be at Government's sole discretion
  2. Protection and Revision of Dealers' Commission be implemented immediately
  3. Enforce full self service
  4. Minimise Credit Card Charges

YBhg TKSU will brief the YB Minister and PDAM will be expected to meet the Minister soon.


1st March 2017 - PDAM & PESAMP met with PMO to submit petition to YAB PM and discuss issues relating to Ceiling Price and Commission.

PDAM SUK also submitted the letters and petition to the two Ministers by the 24th Feb 2017.

23rd to 27th Feb 2017 - Period where Online Petition created by PDAM/PESAMP was active; in order to get all dealers in Malaysia to sign against Price Ceiling mechanism.

Final total of signatories are 2,285 or around 68% of all dealers nationwide 24th Mar 2017.

9th Feb 2017 - MK2 mentioned government considering weekly ceiling price to media, with Oil Company having the option to follow the price or offer further discount.

Government also mindful that the change may lead to rural folks paying more for fuel. Targeted subsidy or other assistance will be given to the lower income groups especially in rural areas.

8th Feb 2017 - Meeting with MoF to discuss possible increase in frequency of pump price change. No mention of Price Ceiling mechanism, only that there could be weekly or bi-monthly change in pump price.

PESAMP & PDAM not agreeable unless Dealer's margin protected and ordering be done by dealers. Attended by President & Vice President of PESAMP and president of PeDAM.

6th Feb 2017 - PESAMP President met with Datuk Seri Johari Ghani to discuss on his suggestion on increase in frequency of pump price change.

Reason given by MoF is to reduce government subsidy and to reduce the quantum of changes to lessen the burden to consumers. It was mentioned that the Dealer's margin not to be touched.

2nd February 2017 - PESAMP and PDAM were invited for meeting with KPDNKK - To discuss increased frequency of fuel pump price change. Things discussed:

  • Price set on weekly basis
  • Price Announcement by PDAM
  • Price Mechanism (APM) published

PESAMP and PDAM objected to this if the commission issue not solved.