Shell Malaysia has decided not to close its petrol stations in Sabah after discussions with the state government and intervention from Putrajaya, according to Datuk Seri Hajiji Noor, the Chief Minister.
Hajiji expressed gratitude for the Federal Government’s sensitivity towards the situation in Sabah and its willingness to listen to their concerns.
Shell Timur Sdn Bhd, the company operating the petrol stations, had previously announced plans to close 34 stations in Sabah starting from January.
In June, Hajiji met with Siti Hurrairah Sulaiman, the chairman of Shell Malaysia, to discuss the closure of the stations.
The closure would have affected 10 stations in Tawau, two in Semporna, six in Lahad Datu, and 12 in Sandakan.
Shell Timur stated that the decision to close certain less profitable retail stations was made to improve the company’s overall performance.
Reports indicate that the closure was primarily due to long-standing losses resulting from the automatic price mechanism (APM) for fuel, which has not been reviewed since 1998.
The APM, a formula used to determine fuel prices in Malaysia, has caused financial difficulties for Shell Timur and other industry players.
If the closure had proceeded, over 500 jobs would have been lost.
Credit: The Star : News Feed
