In August 2016, PETRONAS Dagangan Berhad announced the availability of their Dynamic Diesel Euro 5 that will be concurrently sold alongside their Euro 2M diesel. At the time of launch, only six Petronas stations in the whole of Klang Valley and two in Johor Bahru carry the higher quality diesel fuel.
AutoBuzz.my: Why is it that BHPetrol has over 100 stations offering their Infiniti Euro 5 diesel, but Petronas only has 15?
Hafiz: As of today, we have 15 stations across Peninsular Malaysia that sell our Dynamic Diesel Euro 5. We target to have as many as 50 stations by the end of this year (the target was initially 25 stations) and we are working very closely with the retail team to expedite this process.
Before answering your question, let me explain why the expansion isn’t as straightforward and easy as one thinks. There are a number of factors that play a role in this, but it’s ultimately the demand that necessitates the supply. Take the suburbans and rural areas for instance. Generally, places like these have a relatively low concentration of modern diesel cars. Conversely, they are populated by small to medium sized commercial trucks, especially pickup trucks. And these are the type of consumers who are our regular Euro 2M customers.
We’re not saying that we completely overlook the possibility, but a lot of the small Petronas stations have very limited underground tanks, which typically come in threes or fours. These tanks store the fuels, and the Government mandates every single station to offer two bread and butter fuels – RON 95 and Euro 2M diesel. It’s hugely uneconomical to install a brand new tanker underground, so the next best choice is to drain a tank and fill it up with the Euro 5 diesel. This brings me back to my earlier point: if the demand for RON 95 and Euro 2M diesel outweighs that of the Euro 5, then we simply cannot offer Euro 5 due to infrastructural deficit.
Hafiz: Ever since Euro 5 diesel was introduced to our market, every litre of it was – and still is – imported from Singapore. Every other brand carrying Euro 5 diesel may or may not be importing the fuel from the same supplier. But the key point here is, everyone is currently importing due to the limitation of domestic refining capability which requires upgrading our refineries.
AutoBuzz.my: We know for a fact that Euro 5 diesel costs much more per litre than the Euro 2M diesel, but why is the difference between the two capped at 10 sen?
Hafiz: The Government issued a decree for all petroleum companies in Malaysia to price Euro 5 diesel 10 sen more than the Euro 2M. This will continue to be regulated indefinitely.
AutoBuzz.my: What are the unique selling points of Dynamic Diesel Euro 5, and how can your existing Euro 2M customers benefit from the higher quality fuel?
Hafiz: Our Euro 5 diesel is specially formulated to do three important things: protect the engine, restore power and promote cleaner combustion. Some people are skeptical about the restoration of power, but the concept is fairly simple. We have blended high quality additives into the diesel fuel whose function is to clean the injectors, which in turn removes dirt accumulated from using poorer quality fuel.
Hafiz: It gets a bit trickier here. Producing and supplying biodiesel (B5 to B10) is just a matter of blending (literally) our diesels with palm methyl ester. Besides Mercedes-Benz, most other car companies have expressed compatibility concerns with biodiesel, fearing that the fuel may cause untoward harm to the engine components, thus voiding warranty.
Mercedes-Benz Malaysia is one of the car companies confident enough to say that their diesel cars can run on biodiesel, and their in-house R&D have confirmed their compatibility. Supplying biodiesel is not at all a problem for us petroleum companies, but the Government needs to resolve the warranty issue with the respective car companies first prior to the implementation of B10 biodiesel. Currently, the relevant governing bodies are still in constant talks with car manufacturers.
AutoBuzz.my: Say I drive a BMW 320d and since day one I’ve been filling up Euro 2M diesel. Will the sudden change to Euro 5 adversely affect the performance of my car in any way?
Hafiz: Absolutely not! In fact, once your car is cleansed of Euro 2M diesel, you will notice the absence of black smoke. The engine will also rev smoother due to less heavy hydrocarbon content. Perhaps the only compromise would be fuel economy, but this varies by engine design, driving style, vehicle condition and other possible contributing factors.
AutoBuzz.my: One last question, Mr Hafiz, for all our readers who may have this question in mind. It is perfectly fine for any diesel cars, trucks and lorries of all makes and ages to pump Euro 5 diesel, am I right?
Hafiz: Yes, that is correct. All diesel-powered vehicles regardless of age and state of technology will experience more or less the same benefits by upgrading from Euro 2M to our Dynamic Diesel Euro 5. It’s cleaner and safer for the environment as well.
Well, all that benefits for just 10 sen more per litre? I’d certainly not think twice. Do share with us your thoughts and opinions on the matter, dear readers. Also, feel free to pose any questions relating to the fuel and we will address them with the help of Mr Hafiz.
We would like to thank Petronas Dagangan Berhad for this valuable opportunity.