Caltex, Petron begin goodwill payments to motorists over RON95 engine damage - minister

PARLIAMENT | Petron and Chevron, which operates the Caltex brand, have begun making goodwill payments to motorists whose vehicles suffered engine damage following complaints of contaminated RON95 petrol, the Dewan Rakyat was told today.

Domestic Trade and Cost of Living Minister Armizan Ali said the compensation measures were initiated on a goodwill basis for verified complaints while investigations into the incidents continued.

“Caltex and Petron have initiated customer recovery programmes offering compensation on a goodwill basis based on established criteria, without any admission of wrongdoing or liability at this stage.

“Payments will be made to customers who have submitted complete complaints with valid supporting documents,” he said during Ministers' Question Time.

The minister was responding to Abdul Latiff Abdul Rahman (PN-Kuala Krai), who sought the Chemistry Department's findings on RON95 samples collected from five states and oil depots, as well as measures to restore consumer confidence and compensate affected motorists.

On the investigation, Armizan said preliminary analysis of 43 petrol samples by the Chemistry Department had found no evidence of water contamination.

He said an initial report dated Oct 29 showed water content below 0.05 percent, the laboratory’s minimum reportable detection limit.

“The remaining samples are still being analysed, and a full report will be issued once the department completes its tests.

“The immediate focus was on detecting water contamination, but none has been found so far. We are now examining the possible presence of other foreign substances and the fuel formulation during the period concerned,” he said.

Not isolated cases

Armizan said 262 RON95 petrol samples had been collected from eight states and three oil company depots since complaints first emerged on Oct 3.

Both companies also sent samples to their own laboratories, including those overseas, for further testing.

“Although the findings are not yet conclusive, the issue does not appear to affect the entire supply chain but rather fuel supplied during a specific period,” he said.

Armizan stressed that the incidents were not being treated as isolated cases, despite being concentrated in certain locations and periods, particularly in Kedah and Penang.

He said some affected petrol stations remained closed.

To prevent similar incidents, the ministry was benchmarking Malaysia's fuel quality standards and supply chain monitoring practices against those of Singapore, the United Kingdom and Australia.

Armizan said motorists dissatisfied with the compensation offered could pursue other avenues, including lodging formal complaints with the ministry, filing civil suits or referring their cases to the Tribunal for Consumer Claims Malaysia.

- Bernama

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