Foreigners Barred From Purchasing RON95 Petrol Starting August 1

Foreign-registered vehicles will be barred from purchasing subsidised RON 95 petrol from August 1, leaving them with the only option of RON 97 petrol—which would be subjected to a managed float by then—if they want to keep their vehicles running while in Malaysia.

“This exercise is in accordance with the government's policy that the subsidy is meant for Malaysians and not foreign-registered vehicles”, Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said when announcing the government's latest plan to ensure that only Malaysians get to enjoy subsidised fuel rates.

However, some quarters, including Alang Zari Ishak, President of Esso Petroleum Dealers Association Malaysia, have voiced concerns over the difficulties of effective implementation. “When customers pay with their credit cards, the station cannot control which fuel they buy”, he said. “They can pick up any nozzle, be it the ones for RON 95 or RON 97”.

The government's response, thus far, is that this new plan is surely easier to enforce than the previous one which called for foreign-registered vehicles to pump no more than 20 litres of fuel at any petrol station within 50 km from the border. The onus is on the petrol stations to spend the necessary manpower to prevent foreigners from picking up the RON 95 nozzle, as their license to operate is very much on the line, the government added.