Where Has All The Petrol Gone?

What should motorists do if the petrol stations have run out of petrol?

If the mamak stalls are not open for business, what could those people who are used to taking teh tarik do to fill up their stomachs?

Coincidentally, these two things took place in Klang Valley at the same time during the Hari Raya holidays which just ended.

Fortunately, only some of the petrol stations lacked unleaded-92. If the motorists were willing to try a few more stations, they could still get their tanks filled.

Of course, they could also choose to have their tanks filled with the more expensive variant.

And also fortunately only some of the mamak stalls in town were close for business during the festive season.

In a similar manner, gluttons could still enjoy their favourite roti canai and curry if they cared to drive a few more kilometres.

But why have such things happened?

Easy enough. A third of all petrol-transporting trucks were on holidays, while operators of the so-called 24-hour eateries took time off for Raya celebrations in their respective kampung.

A conclusion that we can draw: Our Muslim friends ended their fasting month and were off to celebrate the Raya festivities.

If the mamak stalls were not open, at least there was something else we could eat to go on living. But without the petrol, the consequences could be very grave.

"Perhaps the government should inform the operators in advance of any imminent reduction in fuel prices to prevent overstocking and unnecessary losses."

We also know why this has happened: Undersupply!

The main culprit of undersupply is the limited storage of petrol at filling stations. In order to minimise losses, and to bring the possible damage following "the government's sudden announcement to reduce fuel prices," filling station operators have no choice but to come up with such a counter-measure.

At the end of August, before the government reduced the fuel prices for the first time by 15 sen in view of falling international crude prices, petrol stations in the country normally stocked up to seven or eight days of fuel supply.

But with the drastic drop of 15 sen in retail fuel prices, the operators had to suffer certain extent of losses.

Losses? it should be reduced profits, to be exact.

Well, earning less is equivalent to "losing," at least to petrol station operators. But the consumers who fork out the money do not think the same way.

No one can forget how the entire country was jammed up for hours just to get fuel tanks filled up before the 78-sen hike not too long ago.

The unlucky few, who had queued up for hours, might have to fill up their tanks with the new price once the clock struck twelve.

Therefore, when the operators were making noise because of the losses, the consumers would burst out in protest, "Why didn't you make noise when you made a good profit earlier on?"

Since the international crude prices started fluctuating in a broad range, the government has set an upper limit for petrol allowances at 32 sen per litre, and promised to review petrol prices on a monthly basis.

As such, motorists would not fill up their tanks to the full towards the end of the month while awaiting further government announcements. For fear of making losses, petrol station operators normally stock up to only three days of supply.

Both the motorists and petrol station operators have wanted to win in this price war. Having said that, the relationship between the two shouldn't have been so vulnerable, and during such a time, often only the government's policies will help re-establish mutual trust.

For instance, the government might want to inform the operators a week in advance of any imminent reduction in fuel prices. This could effectively prevent overstocking and unnecessary losses. (By CHEN HUIJIAO/Translated by DOMINIC LOH/Sin Chew Daily)

MySinchew 2008.10.04