Allow fuel pump discounts

TO strengthen government finances and improve economic efficiency, the government in 2014 took a brave step by announcing the removal of fuel subsidies and introduced the managed float system to set the retail price of fuel.
This decision although absolutely necessary, took the nation especially those in the B40 and M40 segment by surprise as fear loomed that it would trigger inflation.
From monthly price adjustments, the government now announces it on a weekly basis where world oil prices are reflected in the price motorists pay at the pump.
It is comforting to note the government's assurance of intervention should the price of RON 95 at the pump surpass the RM2.50 a litre threshold.
While consumers are now accustomed to weekly price adjustments, the Malaysia Consumers Movement urges the government to implement a fixed ceiling price policy and allow fuel station operators to offer discounts.
This fixed ceiling price can be adjusted on a weekly or monthly basis.
While healthy competition will benefit consumers it will also provide an opportunity for the operators to reassess and improve on their business efficiency and strategy.
It is unfair for the operators to blame fuel price adjustments for impacting their operating sustainability as it is incumbent upon them to improve their business efficiency to stay afloat.
It is time for the operators to behave like real businessmen by formulating winning strategies to win a bigger market share.
As removal of subsidies will significantly improve government revenue, it is hoped that the government will channel these savings into critical areas which desperately require funding.
All of us have to be far-sighted if we aspire to attain developed nation status.
Darshan Singh Dhillon
President
Malaysia Consumers Movement