Foreign Card Ban At Pumps Strengthens RON95 Subsidy System

By Muhammad Faiz Baharin and Ahmad Erwan Othman

KUALA LUMPUR, March 30 (Bernama) -- The restriction on RON95 petrol purchases using foreign credit and debit cards at self-service pumps, effective Wednesday, is seen as a move to strengthen Malaysia’s fuel subsidy mechanism amid global oil price uncertainty driven by geopolitical tensions in West Asia.

Petrol Dealers Association of Malaysia (PDAM) president Datuk Khairul Annuar Abdul Aziz said the measure complements the ban on RON95 sales to foreign-registered vehicles, which also takes effect the same day.

He described the initiative as a practical step to ease monitoring at the retail level while improving station productivity through automated transaction controls.

“This reduces reliance on manual monitoring by staff, especially with manpower constraints, and allows enforcement to be carried out more effectively around the clock.

“It also ensures station operations are more efficient and organised,” he told Bernama today.

However, Khairul Annuar said physical monitoring must continue, as some foreign vehicle owners may still use locally issued bank cards.

Earlier, the Domestic Trade and Cost of Living Ministry (KPDN) Enforcement director-general Datuk Azman Adam said purchases of RON95 using foreign credit and debit cards will only be allowed at the counter from Wednesday.

Meanwhile, Pertubuhan Mesra Pengguna Malaysia (PMPM) deputy president Azlin Othman said the payment restriction system is harder to manipulate than conventional methods but must be backed by strict on-ground enforcement.

She also cautioned that loopholes may still exist, including the use of local representatives to carry out transactions.

Azlin said the move signals a need for broader subsidy reform.

“This is not just about plugging leakages, but a clear indication that the current subsidy system is no longer relevant and must be restructured towards a more targeted approach,” she said, adding that leakages in RON95 subsidies have caused significant losses to the country.

Federation of Malaysian Consumers Associations (FOMCA) president Datuk Dr N. Marimuthu said the measure could mark an early step towards wider subsidy rationalisation.

“The government must ensure public funds reach those who truly qualify,” he said, stressing the need for transparency in policy implementation.

The prolonged West Asia conflict since late February has pushed global crude oil prices up by more than 40 per cent, surpassing US$100 per barrel and raising concerns over supply disruptions.

Prime Minister Datuk Seri Anwar Ibrahim recently announced a temporary adjustment to the Budi MADANI RON95 (BUDI95) programme, reducing the monthly quota from 300 litres to 200 litres starting Wednesday.

He, however, assured that the subsidised price of RON95 remains unchanged at RM1.99 per litre.

-- BERNAMA