Fuel prices could go down further: Shahrir

KUALA LUMPUR: There is a chance of a further reduction in pump prices if the average world crude oil price for this month is below US$104 per barrel, said Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad.
“If the world crude oil price continues to drop and averages at below US$104 per barrel for October there is a chance we can reduce further the pump prices for November.
“If it doesn’t then there will be no change in prices,” he said Wednesday at the Hari Raya open house hosted by the Prime Minister and his Muslim cabinet ministers at the Putra World Trade Centre.
The last fuel price review was done on Sept 24 when the Government announced a 10sen reduction bringing the prices of petrol and diesel to RM2.45 and RM2.40 per litre respectively.
On the shortage of fuel in some petrol stations, Shahrir said the reason was because the station operators could not make their cash before delivery (CBD) payments for their fuel supply as banks were closed for the current Hari Raya holiday and weekends.
“The stations should come up with a business system which addresses the problem of banks being closed during public holidays, festive seasons and weekends,” he said.
Shahrir also said that station operators should not blame the shortage on the Government’s announcement of fuel price reduction. He said this was unacceptable.
The Petroleum Dealers Association of Malaysia had said that dealers had been reluctant to increase their stock in advance due to speculation that fuel prices would be cut.
Shahrir said the operators were being selfish by asking the Government to delay the announcement of the fuel price reduction.
“The Government will not delay it because we need to immediately give the benefit to consumers,” he said.
Shahrir said it was unreasonable for the operators to say they were making losses due to the price reduction, and pointed out that the reduction was also followed by an increased demand for fuel.
“The operators made less profit because of the price reduction but no losses. Their margin is 12sen per liter so if we reduce pump prices by 10sen per liter they still make 2sen. It’s making less profit, not being in a dire state,” he said.
He added that the ministry would investigate to see whether there was sabotage, deliberate shortage of supply or if there was a protest.


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