No more credit card payments at pumps
By Arman Ahmad
Petrol station operators will not accept payment by credit card from next
month. Petroleum Dealers Association of Malaysia president Alang Zari
Ishak today said the 1.25 per cent charge imposed by banks for credit
card usage had became "unbearable" due to increased fuel prices.
"These charges are pegged to the selling price. Therefore they increase
in tandem with the price of fuel. However, the eight sen per litre
commission for petrol and 3.5 sen commission per litre for diesel remain
the same," he said.
These differences, he claimed, were too big for petrol station owners to
manage.
Therefore, they propose to discontinue the use of credit cards altogether
after the coming Hari Raya celebrations, unless the Government intervenes.
When contacted, Domestic Trade and Consumer Affairs Minister Datuk Shafie
Apdal said: "I am not aware that the association will stop the use of
credit cards at petrol stations after Hari Raya.
"The use of credit cards to purchase fuel at petrol stations should not
stop."
He said he would contact the association to see what the ministry could
do to help.
In explaining the rationale for stopping the acceptance of credit cards,
Alang, whose association has a membership of 2,700 petrol station
operators, said the profit margin for diesel sales was worst hit by the
credit card charges.
He explained that for every litre of diesel purchased using a credit
card, 1.601 sen went to the bank as credit card charges while the petrol
station operator made a net profit of just 1.899 sen.
More than 40 per cent of petrol purchases are done using credit cards.
"We submitted a working paper to the Government, via the Ministry of
Domestic Trade and Consumer Affairs in May. The working paper outlines
the problems faced by the dealers."
Alang added that although they had been in constant dialogue with the
ministry since then, the ministry had yet to respond.
"We also propose reducing the operating time of petrol stations from 24
hours to 16 hours.
However, in critical areas near highways, hospitals, wholesale markets
and other such places, we will continue to operate 24 hours a day," he
said.
Malaysian Trades Union Congress president Syed Shahir Syed Mohamud said
petrol station owners should not take the easy way out when faced with
the problem.
"They didn’t complain when they were making large profits, but now when
it’s reduced they are not satisfied."
Federation of Malaysian Consumer Associations president N. Marimuthu said
the move would inconvenience the public as many consumers used credit
cards to pay at petrol stations.
"The banks and petrol stations should negotiate a solution to the
problem. We can’t call ourselves a technologically advanced state without
credit card facilities at petrol stations," he said.
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