Monday, August 09, 2010

Yellow or Green?

The recent price hike on fuel has seen RON95 petrol increased by 5 cents per litre and RON97 dictated by market price. As the price of RON95 is still subsidised, its sale to foreigners are banned with foreign registered cars can only fill up with RON97.

Surprisingly, we could see foreign registered cars gleefully pumping RON95 into their tanks (at least sighted at a few petrol stations, along the North-South highway), clearly defying the rule. So, the question is who is responsible to enforce this ruling? The relevant ministry or the petrol station owner.

In an economic sense, an extra 25cents per litre would be an interesting enough carrot for petrol station owners to enforce the ruling of RON95 non-sale to foreign registered cars, as a full 50litres tank could easily brings in an extra RM12.50 in sales. So, why it is not being fully enforced by the petro station owners?

Or is petrol sales commission are based on volume only? Hence there no extra motivation for sellers or petrol station owners to enforce the sales as it is the oil companies who benefited from the increased price? I can only speculate as I am not from the industry.

Anybody care to elaborate?

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