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'Let Consumers Pay Credit Card Charges'

Posted on: Sunday, 9 October 2005, 21:00 CDT

KUALA LUMPUR, Fri. - The Petroleum Dealers' Association of Malaysia has

suggested that consumers pay the credit card charges that petrol stations

now absorb.

Its president Alang Zari Ishak (picture) today suggested that the

public share the burden by paying the transfer fee as practised in

Australia.

"I think the public should bear the cost. Right now, petrol stations

are paying for something the public would normally be charged if they

bought other items."

Alang, who on Tuesday said petrol stations would not accept credit card

payments after Hari Raya, today said the decision was not final.

A "firm" decision, he added, would only be made after Raya.

"We hope the Government can resolve the matter before Raya, although we

do not have a deadline," he said.

On Tuesday, Alang said the profit margin for diesel sales was affected

by credit card charges.

For every litre of diesel purchased using a credit card, 1.601 sen went

to the bank as charges. The petrol station operator only profits by 1.899

sen.

Alang said suggestions, such as transferring the fee to customers,

reducing and standardising bank charges and using a debit card, were

discussed at an earlier meeting with the Ministry of Finance.

However, no decision was reached. More than 40 per cent of petrol

purchases are done using credit cards.

From January to June, credit card purchases amounted to RM1.6 billion.

Last year, total sales of petrol using credit cards were RM2.6 billion.

Alang added petrol stations may reduce operating hours.

Source: New Straits Times

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