While petrol prices have gone up four times and diesel prices five times over the past two years, petrol station operators say they have not benefited because their commission has not changed since 2002.

One operator in Perak who has been in business since 2003 said today that operators suffer more as they incur higher costs than consumers who too are unhappy over a second increase in petrol and diesel prices.

Petrol went up by 10 sen per litre while diesel costs 20 sen more per litre for diesel, and Liquified Petroleum Gas (LPG) five sen more per kg.

"Operators purchase products in bulk. At my station, daily sales are about 6,000 litres of petrol a day. Therefore, I purchase and sell about 180,000 litres a month. From this, I only get a nett commission of 7.37 sen per litre," said the operator who requested anonymity during a telephone interview.

"When premium petrol price was previously at RM1.52, my commission was the same as it is now at the price of RM1.62 per litre (RON 97). As for diesel, my commission is 3.21 sen from RM1.281 per litre."

The operator, who runs a station in a small town on the outskirts of Ipoh, said he feels the pinch more than operators in large towns such as in the Klang Valley.

He claimed to know an operator in Ulu Klang, Selangor, who sells about 30,000 litres of petrol daily and therefore earns more in commission.

"To help my business, I have to spend on advertisements and run promotions such as lucky draws and free gifts with purchases. Not all station operators are making money. The government should increase the commission," he said.

Additional costs

Apart from operational costs, the operator said he also sustains losses if he pays a 1.5 percent service charge to banks for petrol purchases made with credit cards.

"The use of credit cards is being encouraged, especially when paying right at the pump. This service is convenient and is being strongly promoted. However, the fact remains that we have to bear a high percentage of the service charge," the operator added.

When contacted, Petrol Dealers Association of Malaysia (PDAM) vice-president Abu Samah Bachik agreed with the operator, saying that the government must increase the commission.

"Now is the time. Petrol prices have gone up many times and yet, our commission remains the same. We're no longer making profits, especially from diesel sales," he said.

Diesel prices have to date gone up 68 percent from its original price of 76.1 sen per litre on April 30, 2004. It was increased by two sen the next day.

Two memoranda

Abu Samah added that PDAM had submitted two memoranda over the past two years, with the most recent one sent last month, to Domestic Trade and Consumer Affairs Minister Shafie Apdal ( photo ) appealing for an increase in commission.

He said the association has been trying very hard to secure the increase in commission which has been stagnant at eight sen and 3.5 sen per litre for petrol and diesel respectively despite the fuel price increases.

He agreed that the credit card charges were a burden to operators and a valid reason to justify a commission increase.

Meanwhile, the government said the retail price increase is an extension of its decision to periodically reduce petroleum subsidy as well as part of its efforts to curb the impact of global crude oil price hikes.

Bernama quoted Minister in the Prime Minister's Department Mustapa Mohamed as saying today that subsidies will reach at least RM7.6 billion this year if prices are not raised.

The latest increase, he added, would save the government RM1 billion.