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Tuesday, December 9, 2008

DAP: Allow fuel retailers to discount fuel

DAP gave a pretty good suggestion earlier this week with regards to how petrol and diesel is priced in Malaysia. They’ve suggested that fuel retailers in Malaysia be allowed to compete to offer the best prices at the pump.

The government can easily set a ceiling price for fuel according to the average price of fuel or however they’ve been determining it currently, but stations should be allowed to sell fuel lower than that if they want to. The whole idea is that some companies could run their business more efficiently and translate the savings to people, or even decide to just reduce the profit they make on each liter of fuel in hopes of selling more liters. Competition could be beneficial for consumers.

Some countries are like this this, for example Australia and the USA where prices could be different between various retailers and locations. The first step would be to allow such discounting to actually happen, then we have to wait and see if any of the fuel retailers are willing to become the “Digi” of their industry and offer aggressive attractive pricing to pull more users over.


Sumber: Paul Tan

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