Are rising MDR charges squeezing petrol station operators?

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Bumiputera Petrol Station Operators Association Calls for Review of Merchant Discount Rates

The Bumiputera Petrol Station Operators Association of Malaysia (Bumipeda) is urging the government to review the Merchant Discount Rate (MDR) on credit card transactions, citing it as an increasing financial burden on operators. This concern is compounded by existing cost pressures from elevated fuel prices, creating significant operational challenges.
MDR Imposed on Higher Pump Prices

Bumipeda's vice-president, Shahrul Nizam Md Radzi, highlighted that MDR charges are currently calculated based on the higher pump price of fuel. This method of calculation intensifies the financial strain on petrol station operators, who are already navigating a challenging economic landscape.
Cumulative Cost Pressures on Operators

Petrol station operators are facing a confluence of cost pressures beyond just the MDR. These include managing the complexities of inventory, ensuring adequate working capital, maintaining healthy cash flow, mitigating various operational risks, and adapting to the widespread adoption of digital payment methods.
Call for Sustainable Industry Policies

Shahrul Nizam emphasised that effective government policies must not only safeguard consumers but also ensure the long-term sustainability of the entire fuel supply chain. This includes a continuous review and refinement of mechanisms like the Automatic Pricing Mechanism (APM) to align with global energy market dynamics and guarantee fair pricing, industry viability, and national energy security.

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Are rising MDR charges squeezing petrol station operators?

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