How have petrol dealer commissions been adjusted for RON95 and diesel?

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Petrol Dealer Commissions Adjusted for RON95 and Diesel

The retail prices for RON95 and RON97 petrol, along with diesel, will see a reduction from tomorrow until January 11. Specifically, RON95 will be priced at RM1.93 per litre, RON97 at RM2.23 per litre, and diesel at RM2.04 per litre. These new prices reflect a decrease of 27 sen for RON95 (from RM2.20) and RON97 (from RM2.50), and a drop of 14 sen for diesel (from RM2.18).
Increased Commissions for RON95 Petrol Dealers

The retail prices now incorporate revised commissions for petrol station operators, approved by the Cabinet on January 2, 2019. For RON95 petrol, the commission has been increased by 2.81 sen, bringing the total to 15 sen per litre. This represents a notable rise from the previous margin of 12.19 sen per litre.
Higher Margins for Diesel Retailers

Similarly, commissions for diesel retailers have also been adjusted upwards. The Pakatan Harapan government has increased the commission by 3 sen per litre for diesel, setting it at 10 sen per litre. This is an increase from the prior margin of 7 sen per litre.
Historical Context of Commission Revisions

These adjustments to dealer commissions are the first revisions in over a decade, with the last update occurring in 2008. The decision to increase these margins was made in response to discussions with petrol dealers who previously faced potential losses under a weekly float system when fuel prices fell, as they had purchased stock at higher rates.
Government Intervention through Price Caps and Subsidies

Despite the implementation of a weekly automatic pricing mechanism (APM) that adjusts fuel prices based on global oil trends, the government will maintain price caps. Retail prices for RON95 petrol will be capped at RM2.20 per litre and for diesel at RM2.18 per litre through subsidies. These price caps are a temporary measure, expected to remain in effect until targeted RON95 petrol subsidies are introduced mid-year, after which the market-driven float system will fully take over.

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How have petrol dealer commissions been adjusted for RON95 and diesel?

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