Motorists and oil companies quarrel over new fuel quality

By Henry Matakim

A month after its launch the verdict is still out on RON95, a fuel that is supposed to be cheaper and environmentally friendlier. Thousands of motorists complain that they spend more on the new petrol that makes their cars run slower. The oil companies and the ministry of domestic trade, cooperative and consumerism deny this. So, can the motorists be wrong?

Last week, petrol stations suddenly ran out of the premium RON97 fuel which sells for 2.05 ringgit (60 cents) a litre, 25 sen more than RON95. That forced many motorists to use the poorer fuel; but others whose cars could only run on RON97 were stranded.

Motorist Victoria Duenas says she goes for the cheaper RON95 which emits less pollutants because of its lower sulphur content. “I’m not technical, so I can’t tell the difference. But my husband does. He says it makes his car sluggish.”

Cheaper it is not, as many motorists point out. “We are paying for an inferior fuel what we used to pay for a premium product,” says Ali Ahmad who prefers RON97 as his Proton Saga labours to climb a slope to his house in Kota Kinabalu.

Shell says RON95 is of the same quality as RON97. Really? If so, why then is RON97 sold at a 25-sen premium over RON95?

The government says it still pays a monthly 304m-ringgit subsidy for RON95 although the higher selling price saves it 33m ringgit in yearly fuel subsidies.

Oil companies said the shortage of the higher quality fuel was due to a shipment delay. But they were not convincing. Motorists said kiosks had never run out of petrol before. The exception was when companies refused to produce more diesel oil because of differences with the government on its subsidised selling price.

Thus the industry's explanation disturbed many motorists who questioned why there was no shortage of RON95 if there was indeed a delay in fuel shipment. The cheaper fuel should dry up faster than RON97 since the oil companies have insisted that it is more popular. The firms are not talking any more. But the shortage of RON97 tells a tale of inefficient supply planning or motorists’ preference of the more expensive fuel.

In the same week, Shell Malaysia launched a new version of RON95 and RON97 in peninsular Malaysia. Its FuelSave Unleaded is supposed to save motorists money of one litre in fuel for every tank of 50 litres bought at the same price as the older petrol. Why Shell deems it fit to introduce a new petrol to compete with its existing products is anybody’s guess. But FuelSave will not be available in Sabah until December. – Insight Sabah