The Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced that petrol station operators could face fines greater than the existing RM1mil if they allow the illegal sale of RON95 fuel to foreign-registered vehicles. This is part of the government’s effort to counter “leakages” involving subsidised fuel.
Armizan said the ministry is also considering holding oil companies accountable for the failure of petrol dealers to prevent the sale of subsidised fuel to those who are ineligible. The sale of subsidised fuel to foreign vehicles is currently considered an offence, and petrol dealers caught doing so can be fined up to RM1mil for the first offence.
Armizan told The Star that the plan to implement targeted subsidies, including for fuel, is being drawn up, and tightening enforcement and ensuring effective laws are in place is crucial. This includes imposing higher penalties against petrol station operators who sell subsidised petrol to foreign registered vehicles.
Furthermore, the proposed increase in penalties for oil companies is aimed at making them vigilantly monitor the operations of their dealers to thwart leakages in government subsidies. The ministry is currently looking into these areas, with further discussions planned before finalizing the measures.
Malaysia imposed a ban on the sale of RON95 petrol to foreign-registered vehicles effective Aug 1, 2010, to ensure that the petrol subsidy only benefits Malaysians. Anyone found guilty of selling subsidised petrol to foreign-registered vehicles faces a fine of up to RM1mil for the first offence and not more than RM3mil for subsequent offences, or imprisonment for up to three years, or both.
For oil companies found guilty of selling RON95 and diesel to foreign-registered vehicles, the penalty is a fine of not more than RM2mil for the first offence and up to RM5mil for subsequent offences. Between 2022 and last year, 38 petrol dealers, mostly operating in the Malaysia-Thai and Malaysia-Singapore border areas, were penalised for selling RON95 to foreign-registered vehicles.
If a vehicle has a foreign registration plate and not a Malaysian one, it can only be filled with the unsubsidised RON97 fuel and not the subsidised RON95, regardless of the driver’s nationality. The price of non-premium petrol, similar to RON95 in Singapore, is US$2.76 per litre (RM12.82), while in Thailand, it is US$1.27 per litre (RM5.90). Currently, the pump price of RON95 is RM2.05 per litre, with RON97 sold at RM3.47.
