The Malaysian Insight

THE Domestic Trade and Consumer Affairs Ministry will ramp up its monitoring and enforcement activities at all petrol stations, particularly those located near land entry points, minister Alexander Nanta Linggi said.

In a statement, Nanta said the ministry has periodically issued instructions to all petrol companies and petrol station operators near the Malaysia-Singapore border to ensure that the RON95 petrol sales ban is enforced.

“The ministry has also ordered all state ministry offices bordering Singapore and Thailand to intensify monitoring and inspections as well as to take stern action against any party that violates the Control of Supplies Act 1961 and Control of Supplies Regulations 1974,” he said.

The law stipulates fines not exceeding RM1 million or a jail sentence of not more than three years, or both, for individuals, and fines no more than RM2 million for entities or companies that violate the act.

Earlier today, former prime minister Najib Razak said owners of foreign-registered vehicles must not be allowed to take advantage of fuel subsidies that are supposed to be for Malaysians.

According to Najib, the authorities and fuel companies must stop this abuse, especially as Malaysia reopened its borders on Friday.

“If a foreigner fills up his tank with 40 litres of RON95, the government will lose RM68.

“With the reopening of our borders, I believe the authorities and petrol stations will monitor this situation tightly,” he said in his Facebook posting, referring to a viral image of a driver from a neighbouring country filling up a vehicle with RON95 at a Malaysian petrol station.

Subsidies for RON95 and diesel are in place, capping them at RM2.05 and RM2.15 a litre respectively.

As a result of this subsidy, foreign vehicles are not allowed to buy RON95 or diesel.

However, there is no prohibition for RON97.

The price of RON95 in Singapore is S$3.02 (RM9.37) a litre while RON97 is S$3.51.

Nanta said the ministry views the matter seriously after it went viral with allegations that vehicles bearing Singapore registration plates were seen filling up with yellow nozzles, which usually are reserved for RON95 petrol.

He said the ministry’s enforcement division has been instructed to trace the Singaporean vehicle.

Petrol Dealers Association of Malaysia president Khairul Annuar Abdul Aziz told The Malaysian Insight that lack of manpower makes it difficult for petrol stations to monitor and stop the purchase of the subsidised RON95 fuel by foreigners.

“It is almost impossible for our cashier to look at the number plate of the car or even what petrol the foreigner is filling up with,” he said. 

“Reopening of international borders on Friday had also seen an increase in foreign-registered cars at petrol stations.” – April 3, 2022.