KUALA LUMPUR (May 23): No operator of the Petronas petrol station returned back their petrol station with the reason of falling of the global crude oil prices, said Domestic Trade, Co-operative and Consumerism Minister Datuk Seri Hamzah Zainudin.

"Most of the affected petrol stations are those that has low average monthly sales, which is lower than 300,000 litre a month, where the earnings from the average monthly sales is not enough to cover the loss between the price difference of the remaining stocks from the previous month," said Hamzah, who had received the information from Petronas Dagangan Bhd

Hamzah said this in a written reply to Nibong Tebal MP Datuk Mansor Othman.

Mansor has asked the minister to state the number of Petronas petrol station owners who have had to close down their business across the country, as they are affected by the drop of crude oil prices and the measures taken to assist them to restore their businesses.

Hamzah said that the government has taken some measures to reduce the loss of these petrol station operators. This included allowing these petrol stations to operate 24 hours, although the normal operation hours are between 6 a.m. and 12 p.m.

He said that the purpose of extending the operation hours is to help the operator to generate more income, as compared to normal operation hours.

"Besides, the government is also studying the implementation of free float ("kaedah apungan bebas" in Malay) to determine the retail price of petrol that will give more benefits to the people, compared [with] the managed float mechanism," he said.

He said the ministry had organised an engagement session with associations of petrol station operators in Malaysia on Feb 4, 2016, to get clearer input on the impact of the falling of crude oil prices.

"From the outcome of the discussion, only a small number [were] affected, because the volume is too low as previously stated," he added.  

On May 5, Deputy Finance Minister Datuk Chua Tee Yong had said the government is mulling the free float mechanism, as it could benefit consumers by introducing competition among petrol station operators, although more detailed studies are needed before a final decision is made.

In 2014, DAP Petaling Jaya Utara MP Tony Pua had proposed the government to replace free float mechanism in place of the managed float mechanism, and counties like Singapore, Indonesia, Australia and the U.K. have let their petrol pump price fluctuate daily.