Have you ever found yourself short on gas and there was no gas station in sight?
I have. I had traveled through roads that offer no refueling opportunity for miles and miles but I had never thought I would have to relive that experience here in Malaysia.
KUALA LUMPUR: The 3,200 petrol stations nationwide, including those along highways, will close at 10pm and open at 7am, with or without the approval of the Government.
This was decided at the annual delegates conference of the Petrol Dealers Association of Malaysia (PDAM) here yesterday.
Frequent armed robberies, increased security costs, higher wages for workers, low night sales, soaring rentals and electricity bills were cited as the key reasons for this decision. [10pm closing time for all petrol stations. The Star. August 2 2007]
Do you realize what does this mean?
Congestion at gas stations just before 10PM and after 7AM.
This would also discourage traveling. I would not want to drive in the middle of the night while the tank is low on gas.
Furthermore, through the same rationale, logistics firms that operate during the night to escape traffic congestion during the day would be adversely affected. This problem would flow to the retailing industry as well as many others that rely heavily on uninterrupted logistics services that run 24/7. In short, this might hurt the economy as a new constraint increases cost of doing business.
Maybe it is time for the government to liberalize fuel prices and allow individual station to set its own prices to cope with their own cost as well as the supply and demand curves they face.
Enough of central planning already.
Do compare that previous report, which the report below, which was published earlier:
KUALA LUMPUR: Fill up your tank before 10pm.
The Petrol Dealers Association of Malaysia wants to close petrol stations at 10pm daily, citing escalating costs and security risk as the reasons.
Association president Alang Zari Ishak said about 200 delegates will attend the association’s annual general delegates conference today to endorse a resolution to close business earlier.
“We want to close for business at 10pm and reopen at 7am every day,” he added.
Alang Zari, however, said that petrol stations along highways would remain open 24 hours. [Fill up at petrol station before 10pm. The Star. August 1 2007]
I think The Star is confused…
7 replies on “[1316] Of we must liberalize fuel prices”
yup mudasir. And it is called the black market. =)
Time to fill up gas cans and sell it on the street with a 50% surcharge to those who are desperate.
If you allow petrol stations to set their own price, you are effectively removing petrol subsidy, which theoretically is just fine.
Unfortunately, because the majority of Malaysians are too stupid to understand why petrol subsidies are bad, there will be riots on the streets for months.
Maybe.
But with price as well as quality of fuel controlled, I doubt this collusion is detrimental to the creation of an efficient market. I think such anti-trust law is important only if prices are already free.
Interesting how 3,200 individual entrepreneurs can collude. We should have anti-trust laws. :p
happened to me once, in ijok. think it was right after results, those hopeless flers made one of the roads one way, which had me driving for at least 30-45 mins to get to a place which would’ve taken 2 mins to drive to >:|
and it was all dark, unlit kampung roads through estates with nooooo petrol station in sigh, or much civilisation for that matter… scary man.
The changes means a reform in economy. I don’t think anyone in Malaysia government are matured enough to think for the future. Hope we are not talking about Mad Max world.