LOCAL petrol dealers have been bullied by some foreign oil companies operating in this country. This industry has turned ‘Survivor-like’ for local dealers trying to make an honest living.
While petrol dealers shoulder all the risks that come with running a business, these foreign companies continue to squeeze whatever they can from the dealers by increasing and imposing unnecessary charges.
In what can be only regarded as veering into slavery, these foreign companies have tried to hike rental fees and increase their revenue share, charges and fees – despite dealers suffering from much lower revenue and having to foot, among others, corporate royalties.
They refuse to give equal commission on the sale of diesel to that of petrol and now there are also claims among the single source suppliers that there appears to be price fixing at convenience stores.
The convenience store business is considered ‘a thin life line’ for local petrol dealers.
They do not make much and even have to shoulder losses from the sale of petrol.
Despite deriving additional income from leasing out space for ATMs, convenience stores and fast food outlets, the income generated here too is shared with these foreign oil companies.
There are also allegations that middle men are appointed as ‘sole distributors’ by these companies to supply convenience stores. The petrol dealers, having nowhere to turn to will now have to pay a higher price from these appointed middlemen.
The petrol dealers are also not allowed to source for cheaper goods, so they can pass the savings to customers.
But do these foreign companies absorb losses suffered by local dealers? Of course not!
What more do these foreign oil companies want from local petrol dealers? Is it their plan to extract as much as possible from the dealers and once there is nothing more to consume, uproot and leave for greener pastures?
The government knows full well about what is going on and cannot sit idly by while Malaysian petrol dealers are being exploited. The relevant agencies must review this lopsided business arrangement and intervene.
Petroleum is a regulated commodity which makes it easier for the government to dictate terms to these oil companies.
The Domestic Trade and Cost of Living Ministry (KPDN) should also play an important role by inviting open discussions with petrol dealers, without any interference from foreign oil companies and the fear of being terminated.
The government can also set up a whistleblowing platform to assist in refining the lopsided terms and promote a just and equitable business environment for all players. – November 9, 2023
Doris Perng is a Scoop reader