Dealer association asks to suspend approval of retail outlets

The Petrol Dealers Association Malaysia (PDAM) wants the government to stop issuing approvals to oil companies for new petrol stations in the country, as part of efforts to reduce fuel subsidy and curb profiteering. In a statement, PDAM said opening too many new petrol stations will result in the government increasing the fuel subsidy. “Opening of many new petrol stations is the oil company’s intention to provide service and expanding their market share. But to the oil companies, the more they sell the more they profit, while to the government, the more oil companies sell, the higher the government subsidies,” it said. PDAM said the Domestic Trade and Consumer Affairs Ministry needs to be firm and freeze all issuance of new petroleum dealership agreements or PDA licenses for a period of five years with immediate effect. (May 7, 2008)