Fair Move Widens Action On RON95 Subsidy Abuse

KUALA LUMPUR, Feb 5 (Bernama) -- New regulations expanding legal action against the misuse of subsidised RON95 petrol to include both buyers and sellers from April 1 have been described as a fairer and more balanced approach to curb subsidy leakages.

The commitment shown by petrol station operators at the seller level, coupled with the public’s role as the government’s eyes and ears on the ground, indicates the new rules have strong potential to reduce abuse, ensure subsidies reach eligible recipients, and improve transparency in the management of subsidised fuel.

Petrol Dealers Association of Malaysia (PDAM) president Datuk Khairul Annuar Abdul Aziz said firm action should be taken against any petrol station operator who knowingly and deliberately sells subsidised fuel to ineligible parties.

As such, he said station operators must be more vigilant, particularly regarding vehicles with foreign registration numbers, and ensure there are no attempts to purchase subsidised petrol.

“Taking similar action against individuals who are not eligible to buy subsidised fuel is also the right move to address leakages on the buyer’s side.

“Drivers who deliberately conceal registration numbers or make false representations about their vehicles act with clear intent, and penalties must therefore be meaningful, proportionate and reflective of the seriousness of the offence,” he said.

PDAM also supports technology-based enforcement, including systems capable of detecting foreign-registered vehicles and restricting them to RON97 purchases, while prioritising action against high-impact subsidy leakages involving organised syndicates and large-scale abuse.

Prior to this, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said that from April 1, petrol stations as well as owners or users of foreign-registered vehicles could face legal action for the sale or purchase of subsidised RON95.

He said the move is based on new regulations under Section 6 of the Supply Control Act 1961, which prohibit foreign-registered vehicles from purchasing the subsidised petrol.

The policy and regulatory enhancements align with the government’s direction through the Ministry of Domestic Trade and Cost of Living (KPDN) to ensure subsidies are properly targeted and directly benefit Malaysians.

At the same time, the government continues to strengthen enforcement of the ban on RON95 purchases by foreign-registered vehicles, including through the use of MyKad mechanisms to channel fuel subsidies, as an initial step to ensure only eligible groups benefit from subsidised petrol.

Public feedback gathered at several petrol stations around the capital found broad support for the new measures, which are seen as effective in curbing RON95 abuse, particularly by irresponsible operators seeking illicit profits.

Some users believe certain operators have previously turned a blind eye when foreign-registered vehicles purchased RON95, and said the new rules would close such loopholes.

Civil servant Mohd Huzairy Abdul Manaf, 38, who has witnessed such incidents, said the regulations could help curb irregularities at petrol stations.

“Maybe some staff are not alert or deliberately allow foreigners to buy RON95, even though everyone knows it is meant for locals. I hope authorities will carry out frequent monitoring at all stations,” he said.

Meanwhile, food delivery rider S. Ravin Rau, 27, said public participation is equally important.

“If you see a foreign vehicle being filled with RON95, immediately press the ‘emergency’ button on the pump to stop the filling and report it to the station,” he said.

For the record, in January 2026, a 64-year-old Singapore permanent resident was fined RM9,000 by the Kulai Magistrates’ Court after being recorded covering part of his licence plate with black tape to purchase RON95 petrol in Johor.

KPDN remains committed to strengthening monitoring and enforcement capabilities in cooperation with federal agencies, including the police, armed forces, maritime enforcement agency, customs department and border control agencies to combat subsidy leakages.

The public is encouraged to lodge complaints on RON95 misuse through KPDN’s official channels via Hotline 1-800-886-800 or WhatsApp at 019-848 8000.

-- BERNAMA