Malaysia to penalise foreign-registered vehicle owners who buy subsidised RON95 petrol starting Apr 1

KUALA LUMPUR: Owners of foreign-registered vehicles who buy RON95 petrol in Malaysia could face legal action and a potential fine from Apr 1, as the government strengthens control over the distribution of the subsidised petrol. 

Under the new rules, drafted under the Control of Supplies Act 1961, legal action can be taken against both the owner of the foreign-registered vehicle and the fuel station operator, said Domestic Trade and Cost of Living Minister Armizan Mohd Ali in parliament on Wednesday (Jan 28).

Currently, Malaysia only charges petrol station operators for selling the subsidised fuel to foreign-registered vehicles.

“Through the new regulations that we are drafting, the prohibition will apply not only to sales but also to purchases,” Armizan said, as quoted by local media. “This means that individuals who buy, own or drive foreign-registered vehicles can also be subject to enforcement action.”

The ministry is currently holding engagement sessions with relevant stakeholders, including the road transport department and border agencies, with the new regulations targeted to be finalised and enforced from the start of April, said Armizan.

He added the government would implement measures such as regular inspections at petrol stations to enforce the ban on sales to foreign-registered vehicles and the use of identity card verification mechanisms.

Additional measures include a ban on fuel purchases outside vehicle tanks exceeding 20 litres without a special permit and regular monitoring through logbooks and visit records at petrol stations in border areas.

Several federal agencies including the police, armed forces, maritime enforcement agency, customs department and the border control agency will combat subsidy leakage and smuggling, said Armizan.

The ministry will continue to strengthen its monitoring and enforcement capabilities to ensure the objectives of RON95 subsidy targeting are achieved through nationwide enforcement operations to combat manipulation and leakage, he added.

"We are also exploring the use of advanced technology to enable more comprehensive monitoring and enforcement, ensuring essential goods reach interior and remote areas," he said.

Armizan outlined these measures in response to a question from house of representatives member Andi Suryady Bandy on curbing the leakage of RON95 subsidies, particularly at petrol stations in border areas.

RON95 petrol is the cheapest grade of petrol in Malaysia that is restricted to locals. The government has banned the sale of RON95 petrol to foreign-registered vehicles since August 2010 to prevent subsidy abuse under Malaysia’s Control of Supplies Act 1961. 

On Jan 14, a Singaporean permanent resident was fined RM9,000 (US$2,850) after he was filmed pumping subsidised RON95 petrol into a car with a partially covered registration plate.

Meanwhile, 10 cases of Singapore-registered vehicles filling up with subsidised RON95 petrol were recorded in 2025 up till Oct 7, according to the Domestic Trade and Cost of Living Ministry.

To tackle the issue of foreign-registered vehicles purchasing RON95 petrol, dealers in Malaysia have been calling for legislation to penalise foreigners who purchase the subsidised fuel, reported news outlet The Star.