KOTA KINABALU, June 23 — Sabah Chief Minister Datuk Seri Hajiji Noor said he will meet with Shell Malaysia to discuss its closure of 35 fuel stations in the state and Labuan early next year.
The chief minister said he wanted clarification after learning about the matter.
“I am aware of the situation and will be meeting with Shell Malaysia chairman Siti Hurrairah Sulaiman to find out more about the situation and the fate of the affected retailers in Sabah and Labuan,” he said in a statement here today.
Shell Timur Sdn Bhd, which operates Shell kiosks in Sabah and Labuan, has confirmed it will be closing several less productive fuel retail stations there to sustain the company’s performance in an ongoing review.
It was reported that those affected were 10 in Tawau, two in Semporna, six in Lahad Datu, 12 in Sandakan, two in Labuan, and one each in Likas, Telipok and Kuala Penyu.
The state has a 15 per cent equity stake in Shell Timur through the state-owned Yayasan Sabah Group.
According to news reports, the closures stem from the automatic price mechanism (APM), which has not been reviewed since 1998. The APM is a formula used to calculate the price of fuel in the country.
It was reported that more than 500 people would lose their jobs once the closure takes place next year.
