WHAT had happened on the afternoon and evening of last Tuesday (June 24) at petrol stations throughout the country when vehicle owners were caught up in a frenzy of panic buying at the pump is symptomatic of the current economic difficulties following the sudden huge surge in fuel prices.

No matter how the authorities might want to justify such increases with the withdrawal of subsidies and inspite of the fact that the majority of Members of Parliament (129 from the Barisan Nasional out of the 222 in the Dewan Rakyat) had voted in favour of the motion on fuel price hikes, the bottom line is Malaysians must learn to adjust to the reality of high living costs, widely expected to soar even higher unless there is a big pickup in the slowing global economy – which is unlikely to happen anytime soon short of a miraculous recovery.

What led to the buying pandemonium on Tuesday was the rumour that petrol station operators, numbering several thousands nationwide, would stop selling for three days over the issue of purchase by credit cards at the pump.

Operators are said to be unhappy that after the fuel price jack-up, merchant banks, issuing credit cards, are charging them more for service, hence eating deeper into their already marginal returns.

The Domestic Trade and Consumer Affairs Ministry has been informed but has yet to act. Furthermore, oil companies are not paying operators higher commissions in spite of the increase in fuel prices. And consumers too are probably not spending more than necessary on fuel, sticking to budgetary limits although for the amount they normally paid at the pump previously, they are now getting a lot less.

In other words, motorists are using gasoline more sparingly and what this means to petrol station operators is that while revenue stagnates or even drops, costs have shot up.

A school teacher in neighbouring Sabah was reported as saying the “panic and pandemonium” sparked by the fuel-strike rumour reflected a lack of public confidence in the steps taken to address issues related to the increase in fuel prices.

While this may be put down to overreaction or a minority voice, the fact that panicky queue-ups at petrol stations had even occurred at all not in just a few places but throughout the country is admittedly not a good thing and could portend something even graver if not handled with a heightened sense of priority and due care. Hopefully, it will not be repeated.

Perhaps, the episode could have been averted in the first place with a holistic approach to the issue of hiking fuel prices, taking into consideration the interests of all sectors, including especially those of consumers and operators.

A nationwide shutdown at the pump even for a single day is, to say the very least, disastrous. It will not only affect both big and small businesses alike but also literally immobilise the population at large with devastating consequences to the economy. The stakes are prohibitively high and as such, it is a matter of urgency that remedial measures are taken to prevent a situation of such apocalyptic proportion from ever happening.

It’s timely for the government — in trying to address spiralling living costs — to call all parties concerned to a roundtable conference aimed at seeking solutions to mitigate the far-reaching effects of higher fuel prices and related issues.

Petroleum dealers have already issued a circular that they will not accept credit card payments — presumably for the time being – until the question of charges is resolved with the merchant banks.

Besides, there is also the question of commissions that operators say have not been increased in spite of fuel price hikes and the resultant higher costs of other essentials.

While one of the grouses may be the higher charges operators say they have to meet for accepting credit card payments, the other issue not often highlighted but is, nonetheless, very much a bone of contention, is the operators’ claim that merchant banks are taking too long to pay them and this, according to the operators, could affect their cash flow and disrupt supplies from the oil companies.

It is hoped that the rumour-fuelled panic buying on Tuesday will be the last and that the Domestic Trade and Consumer Affairs Ministry will take steps to quickly address the various related issues in the interest of national peace and security.