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GEORGE TOWN: Motorists here are fuming over the sudden move by petrol stations here as well as Kedah and Perlis to refuse payment by credit and fleet cards.

The decision was made following a meeting in Butterworth at 3.30pm yesterday to discuss a circular by the Petroleum Dealers Association of Malaysia, which had sent out a notice to 3,200 members nationwide advising them to refuse all cards.

More than 400 stations in the northern region decided to enforce the move and started refusing the payment from midnight.

In the meeting, Mobil Stations Malaysia deputy president Roslan Jamaludin said petrol station operators could no longer shoulder the burden of the card charges.

“We lose nearly 50% of our profit to card transactions. How are we going to cut costs if everyone uses cards for their purchase?” he asked.

He added that operators agreed to this “business decision” for “long-term survival” and to highlight their plight to the Government.

Motorist Zafran Zakri Mohamad, 37, said the petrol station operators should not be heartless.

“We are struggling to cope with the recent increase in fuel price. We thought we could depend on credit cards when we run out of cash.

“But now we cannot not even use credit cards. And to impose such a ruling at a time of month when most people are running out of cash is really unacceptable,” said an irate Zafran.

Car rental agent Kintan Natasuri Aziz, 40, who uses the fleet card, said the new ruling would pose much inconvenience to him, as he has to travel outstation to send and pick up cars for rental.

“We also do not carry much cash,” he said.

Another motorist, Maisarah Khairul Anuar, 27, said that if petrol station operators were unhappy with the interest imposed by the banks then they should take it up with banks.

“They should not make consumers suffer,” she said.

Ryan Tang, 31, a graphic designer, said it was not right to immediately implement such decision without giving prior notice to customers.

“What if we run out of petrol after midnight when the ATMs are closed and we cannot withdraw money?” said Tang.

- The Star

Comments (23)

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written by Sagaladoola, June 25, 2008 08:41:43

Then, the petrol stations have to "change their lifestyle"

Citizens change lifestyle already, so now it is petrol station's turn ... ATM has to be allowed.

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written by ahmadneil, June 25, 2008 08:44:20

All this happens because of the stupidity of the present administration in falling to look after the plight of the middle class and the poor.Now we can't use credit cards..WHAT'S NEXT!

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written by slash n burn, June 25, 2008 08:56:54

"We lose nearly 50% of our profit to card transactions".

Yeah right. Out of how many millions you made?
Bunch of greedy leech crying foul for tiny slice of profit.

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written by Awaken64, June 25, 2008 08:59:45

Here lies the Merchant and the UGLY bank & Card establishment. Well MT posted an article of what the bank really wants CARD consumption and non payment is what they love to transact.

Keep your money and spend wisely on needs else u be a sucker to INTEREST PAYMENT AND GET DEEPER IN THE SHIT HOLE.

Press the bank & card company for a lower merchant fee. Operators of petrol pump already suffer with the petrol subsidy reimbursement and their own cash is tied up coz the government takes 6 months to pay and when pressed the ministry staff press the operators for perk or kickback.

Here starts the fight against corruption, lets put the pressure to tell these invalid government servent that are so used to handouts to start to earn their keep. Not expect some lembu to take care of all their expenses from handphones to trips, meals and entertainment.

Once a friend of lamented these particular chap in a local council never spends his pay check at ALL. Semua sudah di bela he claims duit rakyat Selangor.

Well we rakyat are being squeezed from every angle and every authority from the Trash collector till the Little Napoleons. And off course the government policy due to the percentage leaked out due to collusion among these so called guardians of the rakyat.

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written by semut, June 25, 2008 09:09:01

back to primitive!

http://semutmalaysia.********.com

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written by kstee, June 25, 2008 09:09:48

the petrol station operators also need to survice. given the fact that petrol being a necessity, perhaps it time that the govt instruct the banks to lower their charges for petrol transactions.

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written by Dominic, June 25, 2008 09:14:53

If thats the case, it is up to petrol kisok operator to deal with the credit card company . This has nothing to do with credit card holder. Its a legimate form of payment where consumer shouldnt be incovenient . Whats the purpose of having a credit card then . What has the Consumer Assoc of Malaysia got to say about this ?

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written by ksauyong, June 25, 2008 09:30:53

Most people do not realise that the petrol stations earn a fixed sum (not a percentage)from selling a litre of fuel, even if the price of the fuel is increased. This is fixed by our BN Goverment. Payment for every tanker of fuel is on a Cash On Delivery basis. So with the increase in fuel price, selling using credit card will actually reduce their profit. This problem is caused by our BN Goverment who increased the price of fuel without considering all consequences i.e. brainless BN Goverment.

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written by cheemengwong, June 25, 2008 09:33:11

I really hope this will not give the Gomen opportunity to print more money to flood the market!

This will give rise to hyperinflation and a deep recession. The present economic scenario has all this in the making.

Anyway, Malaysia has half past 6 economist and they would not care a hood!

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written by tattooing, June 25, 2008 09:38:11

1st of all gomen "buat perangai"

2nd now the petrol dealer "buat perangai"

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written by budakindia, June 25, 2008 09:44:04

Petrol station owners please change your lifestyle. That's the standard advise by our PM! Don't use expensive electric pumps anymore, use the old manual crank pump from the 1920's era. Another backfired project by BN! Now they will flip-flop again!

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written by jimfish, June 25, 2008 10:18:47

They only know how to make people suffer ....

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written by Lostsoul12, June 25, 2008 11:04:50

If petrol stations are not profitable, wonder why more and more petrol stations being built. Invest for failure??????

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written by kkboy, June 25, 2008 11:21:11

Yes, this move will cause me a lot of inconvenience. But I cannot bring myself to feel angry at the operators. Their profit margin is very low, and the credit card companies take a good chunk of that profit from them. If I run a business, I am entitled to decide whether or not I accept credit cards.

If anyone is to be blamed, look at either the credit card companies or the administration which decides on the margins.

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written by My2Sens, June 25, 2008 12:18:43

Bank charges 1% on the amount charged to the card. How does 1% equate to a 50% loss of profit???

Liar, liar, pants on fire!

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written by Democrats, June 25, 2008 12:34:34

Pump your fuel at Petrol Stations using your credit card........priceless. For everything else, there's mastercard.

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written by whattodo, June 25, 2008 12:38:26

I agree with ksauyong. Most people really do not know that the profit is fixed and not a percentage. Whilst it is (was?) profitable to operate a petrol station, but i think the increase in price is a double whammy blow to the operators coz people will start using their cars lesser and lesser. Already some people that I know of have started riding motorbikes to work.
Maybe the 50% is the total cumulative effect which includes lesser sales (ie lesser sales commissions-it is a remember fixed percentage) which will then be compounded by the waiting period before the credit card merchant pays them, plus the waiting time for the payment from fleet card sales.
Their problems are confounded by companies such as petronas' practice of just sending petrol shipments based on their (petronas') estimates of what the station should consume i.e sell.
So when you receive lesser money from your business but you still need to buy the petrol, what do you do? You fork out your own money. So add the own financing cost to the growing list. Then maybe (i'm not saying for sure) you would get that figure.
Petrol stations are volume business which is further compensated by the minimarket tradings, Thats why you see so many stations with big minimarkets, some enterprising owners even have Giant, McD's and KFC to further boost their income. So while I disagree with the move to not accept the credit card payments but I can't help to feel sorry for these operators coz they are just like trying to make an honest living. I am so confused with what to feel coz some of my good friends are in the business. Damn you BN govn!

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written by Long Man, June 25, 2008 13:06:52

“We lose nearly 50% of our profit to card transactions. How are we going to cut costs if everyone uses cards for their purchase?” he asked.
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yes ke?.... are you sure?... you might lose 50% only if people buy 1liter by credit card.... stupid operator.... nak tipu lagi ke?...

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written by LACOBRA, June 25, 2008 14:36:40

Whatever....let them take cash and see what happens! An invitation to being the target to robbery.

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written by sararaj, June 25, 2008 15:10:43

F OFF lah Pak Lah...

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written by caxyz, June 25, 2008 22:49:17

If I remember rightly, when petrol was in the $1.30/litre range. the operators margin is about 5.5% or $0.0715/litre. Now with its fix profit and petrol at $2.70, profit margin works out to about 2.65%. And with most Cards companies charging between 1 and 2% payable by the station operators, I would understand their grouses.

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