KUALA LUMPUR (March 29): Petronas Dagangan Bhd (PetDag), the marketing arm of Petroliam Nasional Bhd (Petronas) for petroleum products and service stations, will continue to work on diversifying its portfolio, with an emphasis on expanding into the convenience sector and providing low-carbon mobility solutions for its customers.

Its managing director and chief executive officer Azrul Osman Rani said strategic partnerships would play a key role in supporting the company’s strategies to future-proof its business. 

“However, we are mindful of the potential uncertainties in the economy and market that lie ahead. 

“In response to this, we will continue to exercise discipline in our investments and operations, ensuring we optimise our resources effectively to sustain our growth and maintain resilience in the face of any upcoming challenges,” he said in the company's Integrated Report 2023. 

Azrul said PetDag would also ensure customer satisfaction is paramount and is planning ahead, collaborating effectively and investing in a distribution system that is prepared for the future needs of PetDag. 

“We are here for the long game. Our strategy is clear and focused. This strategic approach is about making sure our customers stay with us, trusting in our capacity to deliver reliable solutions,” he added. 

Azrul said the average oil price in 2024 is expected to hover around US$80 per barrel, consistent with the 2023 average of US$82.64 per barrel. 

This projection by the US Energy Information Administration (EIA) anticipates that the Organisation of the Petroleum Exporting Countries and allies, led by Russia, known as Opec+, would embark on production cuts that would balance lower oil demand growth and maintain Brent prices above US$80 per barrel. 

He said that while the oil market is eyeing recovery, market participants remain cautious about future developments.

However, the economic forecasts by Bank Negara Malaysia and other financial institutions suggest a healthier 2024 growth, driven primarily by resilient domestic expenditure for Malaysia. 

“However, new taxation avenues aimed at reducing reliance on petroleum revenues and stabilising the fiscal environment could potentially influence consumer behaviour and spending,” he added. 

https://www.theedgemarkets.com/node/706355