And on strike tomorrow, if...

Kota Kinabalu: Most petrol kiosks in Sabah may go on strike for eight hours this Thursday if the Federal Government fails to come up with an acceptable rate of commission for selling fuel before then.

Sabah Petroleum Dealers Association (SPDA) President Charles Soong, who disclosed this to Daily Express, said this would be carried out once a directive is received from the Petroleum Dealers' Association (PDA) in Kuala Lumpur.

The association is currently negotiating with the Government on the matter.

He said PDA is seeking a higher and acceptable commission for petrol kiosks in Sabah and Sarawak so as to help them survive following the drastic hike in oil prices in the country on June 5.

"PDA is trying to work out an acceptable rate with the Government and it has met with the Secretary-General of the Domestic Trade and Consumer Affairs Ministry in Kuala Lumpur. I was made to understand that initially the proposed commission rate was 7.5 per cent of total sales for both fuels.

"I also heard the Government did offer a new rate of commission but PDA found the amount unacceptable. Hence, the negotiation is still going on," Soong said, adding that SPDA is affiliated with PDA and would leave any decision-making to the association.

He said they have confident of a win-win solution. According to him, the present commission they are getting is 1.7 per cent for diesel and 3.6 per cent for petrol.

"If customers pay for the fuel using credit cards, then the petrol station operators do not get much profit as we have to pay between 0.7 to 1 per cent as charges to the credit card companies or banks that issue the cards.

"For instance, a credit card payment for RM50 of diesel would amount to about 19 litres and the commission we are getting is about RM0.80. After paying the charges to the credit card company, we are left with 30 sen that would be used to pay for the operational costs. That is why some of our members are not accepting credit card payment from customers now," he said.

On rumors that the petrol kiosks would stop operating on Tuesday, Soong assured that all petrol kiosks would be operating as usual.

DAILY EXPRESS NEWS
Sabah
25/06/08