Call for crackdown on fuel subsidy abuse by foreigners


PETALING JAYA: As fuel subsidy abuse continues to spark public outrage, holding foreign vehicle owners accountable for purchasing subsidised Budi95 petrol is a crucial step towards fairer enforcement, say consumer groups.

Previously, responsibility rested entirely on petrol station operators, who often struggled to prevent abuse.

Pertubuhan Mesra Pengguna Malaysia deputy president Azlin Othman said petrol station operators often faced constraints in controlling the actions of those taking advantage of the system.

He cautioned that the flexibility now given to operators must not become an excuse for weak compliance.

“Monitoring must continue to be strengthened,” he added.

To prevent foreign vehicles from filling up with subsidised petrol, the organisation proposed several technological and enforcement upgrades, including integrating the automatic number plate recognition system to instantly identify foreign-registered vehicles at the pumps.

Azlin also suggested control systems, such as requiring special cards or digital verification, to ensure only eligible users can access subsidised fuel.

“There should also be an increase in integrated enforcement, with agencies like the Domestic Trade and Cost of Living Ministry, the Road Transport Department and local authorities working together,” he added.

“Aggressive awareness campaigns are also needed to educate consumers on the legal implications and the impact of subsidy abuse on the national economy.”

Federation of Malaysian Consumers Associations chief executive officer Dr Saravanan Thambirajah said it is an important step to reduce subsidy misuse and ensure Malaysians benefit from public funds.

“Holding both petrol station operators and vehicle owners accountable helps close existing enforcement gaps. However, the implementation must be clear and consistent, especially in border areas,” he said.

He also cautioned that this measure alone is not a complete solution, as stronger border enforcement and better coordination between agencies are still needed to tackle smuggling issues.

Consumer Association of Penang president Mohideen Abdul Kadeer agreed that the authorities must implement a proper mechanism for refuelling and stressed that stern action should be taken against foreigners who pump subsidised petrol.

“Visits by enforcement officers must be regular, and they should stay at least an hour at the petrol stations,” he added.

The abuse of fuel subsidies has been widely discussed in Malaysia, with strong criticisms aimed at foreigners refuelling with subsidised RON95 petrol at RM1.99 per litre.

As of March 26, the market price of RON95 petrol stood at RM3.87 per litre.

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