Ministry mulls legal reforms to hit RON95 fuel subsidy cheats, block foreign cards at pumps

KUALA LUMPUR, Feb 9 — The Ministry of Domestic Trade and Cost of Living (KPDN) is studying amendments to address abuse of subsidised RON95 petrol and shift liability to the perpetrators, said Minister Datuk Armizan Mohd Ali.

He said the move aims to close enforcement gaps under the current system, which largely places liability on petrol station operators under existing supply control laws.

“KPDN is also studying mechanisms to restrict the use of foreign credit cards for the purchase of RON95 petrol to ensure subsidies are enjoyed only by eligible Malaysians.

“Inspections under Ops Samar — covert monitoring operations — will be intensified at petrol stations identified as hotspots to combat subsidy abuse,” Armizan told the Parliament in his winding-up speech on the motion of thanks for the Royal Address today.

He added that the ministry takes seriously allegations of intimidation or extortion against petrol station operators, including those involving video recordings.

Armizan said such acts constitute criminal offences under other laws and affected parties can lodge police reports, adding that KPDN will cooperate with the Royal Malaysia Police if there are elements of abuse of enforcement powers.

On enforcement of the Budi Madani RON95 (Budi 95) programme, he said the Ministry of Finance is the policy lead, while KPDN regulates the Subsidised Petrol Control System (SKPS) and conducts enforcement at the retail level.

Through SKPS, subsidised fuel distribution is targeted at public land transport, goods transport and passenger boat transport sectors, he said.

He noted that with the full implementation of BUDI 95 on September 30, 2025, eligible Malaysian citizens are required to use identity cards to purchase RON95 at RM1.99 per litre.

Armizan said the targeted, data-driven approach was introduced to ensure subsidies are enjoyed only by intended groups and to curb leakages.

He added that RON95 is regulated under the Control of Supplies Act 1961 (Act 122), along with regulations and directives issued by the Controller of Supplies.

“In principle, RON95 is a subsidised controlled item intended for Malaysian citizens using Malaysian-registered vehicles, in line with the government’s subsidy targeting policy,” he said, noting that enforcement liability currently rests largely on licence holders or operators.

Armizan said the government is also examining the lack of legal protection for petrol station operators against fraudulent acts by consumers, including the use of fake local registration plates, foreign-registered vehicles, and another person’s identity card.

He said KPDN is studying legislative amendments to extend legal liability to individuals who illegally purchase or attempt to purchase subsidised RON95 using fraudulent methods.

“The ministry is studying ways to close loopholes such as fake vehicle registration numbers while providing clearer and more reasonable responsibilities for station operators without imposing impractical operational burdens,” he said.

Separately, Armizan said KPDN will introduce new regulations prohibiting the purchase of subsidised RON95 by foreign-registered vehicles, targeted to be enforced from April 1, 2026.

He said legal action can be taken against vehicle owners or drivers once the new regulations come into force, adding that the ministry is also strengthening preventive measures through collaboration with oil companies.