Price Change (7, 13 & 22 MarCH 2020) & Covid-19 IMPACT TO MALAYSIAN PETROL STATION SALES

Published on the 23rd Mar 2020

Sales Impact Due to COVID-19 (Station & Industry Level)

Station Level

Station sales reduced significantly due to COVID-19. Total products, stations lose close to 71% of their sales

Industry Level

Industry norm of 79.7M litres per day contracted to 23.1M litres per day, a reduction of 56.6M litres daily

Price Reduction Impact (Station & Industry Level)

Average station losses due to 20th Mar 2020 price fall

At station level, stock losses averaged out to be around RM20k per station

Total industry losses due to 20th Mar 2020 price fall

In an unprecedented downward price reduction, the industry stock loss was around RM73.1M overnight. RON95 reduced by 38 sen/liter, RON97 reduced by 36 sen/liter and Diesel by 12 sen/liter

Average station losses due to 13th Mar 2020 price fall

At station level, stock losses averaged out to be around RM5k per station

Total industry losses due to 13th Mar 2020 price fall

Second week of reduction, the industry stock loss was around RM16.2M overnight. RON95 reduced by 7 sen/liter, RON97, Diesel E2 and Diesel E5 reduced by 9 sen/iter

Average station losses due to 7th Mar 2020 price fall

At station level, stock losses averaged out to be around RM14k per station

Total industry losses due to 7th Mar 2020 price fall

First week of reduction, the industry stock loss was around RM49.4M overnight. RON95 reduced by 19 sen/liter, RON97 reduced by 21 sen/liter & Diesel E2 and Diesel E5 reduced by 17 sen/iter

Average Closing Stock during Price Fall

Average 'Days Sale' Stock on 20th Mar 2020

Our stations are carrying TOO HIGH STOCKfor ALL PRODUCTS.ALL PRODUCTS WILL BE SOLD AT A LOSS UNTIL THE NEXT PRICE CHANGE!LAST WEEK STOCK LOSSES FOR RON97 & DIESEL E5 ARE CARRIED OVER.

Typically we are only carry 2-5 days stock

Average Closing Stock on 20th Mar 2020 in liters

RON95 and Diesel E2 is expected to be sold at a loss for 7 days straight whilst Diesel E5 and RON97 to be sold at a loss for 2 weeks running. This doesn't take into account last week's stock losses, where both Diesel E5 and RON97 had more than 1 week stock in day sales which was carried over.

Average 'Days Sale' Stock on 13th Mar 2020

Again, except RON95, stations are carrying TOO HIGH STOCK.RON97 & DIESEL E5 WILL BE SOLD AT A LOSS UNTIL THE NEXT PRICE CHANGE,AND LAST WEEK STOCK LOSSES FOR BOTH THESE PRODUCTS ARE CARRIED OVER.

Average Closing Stock on 13th Mar 2020 in liters

Stock quantity is less compared to the 20 March 2020 price drop. Nevertheless, on average, station still have sufficient stocks to last 3 days.There shouldn't be any issues with stations running out of stock.

Average 'Days Sale' Stock on 7th Mar 2020

Except for RON95, stations are carrying TOO HIGH STOCK.RON97 & DIESEL E5 WILL BE SOLD AT A LOSS UNTIL THE NEXT PRICE CHANGE.Stations have to carry over high stock holding.

Average Closing Stock on 7th Mar 2020 in liters

Stock quantity is the most compared to the 13th and 20th March 2020 price drop. On average, station still have sufficient stocks to last 3 days.There shouldn't be any issues with stations running out of stock.
Stats Price Fall Losses (7,13& 20 Mar) & Sale Reduction due to COVID-19.pdf