Saturday, January 28, 2023

M’sian government to stop sale of RON95 to foreign vehicles

NewsM'sian government to stop sale of RON95 to foreign vehicles

The Domestic Trade and Consumer Affairs Ministry will be putting a stop to the sale of subsidised petrol to foreign vehicles.

This came after an image of a man fueling a Singapore-registered vehicle with the RON95 petrol went viral on social media.

In a statement, its minister, Alexander Nanta Linggi had ordered an investigation into the image and more aggressive monitoring to be carried out at all petrol stations.


He also ordered petrol companies and petrol station operators in Johor to disallow the sale of RON95 fuel for foreign vehicles.

“More aggressive enforcement activities will also be implemented with the launch of Ops Pantau 2022 on 3 April.”

“Apart from ensuring adequate supply of goods and sold at reasonable prices, Ops Pantau 2022 was also to ensure high compliance by traders following the full reopening of the economic sector and the country’s border gates starting 1 April.

“The ministry has also ordered its state agencies at the borders of Singapore and Thailand to intensify monitoring and inspection,” he said.

Alexandar also warned those who have violated the Control of Supplies Act 1961 could face a maximum RM1 million fine, maximum three years’ jail, or both.

Is it illegal to sell RON95 to foreign-registered cars?

There is a rule in place on 1 August 2010 to restrict foreign-registered vehicles to buy RON95 in Malaysia. This is because of the higher tax-funded subsidies provided for RON95 users, which are meant to go to Malaysian motorists only.

Hence, cars like Singaporean-registered Toyota Estima can refuel in Malaysia but they are supposed to be buying RON97 or RON100 only.

RON95 is currently priced at RM2.05 a litre in Malaysia, significantly cheaper than RON97’s RM3.91 a litre price. As a comparison, 95 currently goes for around SG$3 (RM9.31) a litre in Singapore, while 98 goes for SG$3.47 (RM10.77) a litre.

Apart from the RON95 rule, there are other measures in place to discourage Singaporean cars from refuelling with subsidised fuel in Malaysia.

There is a Three-Quarter Tank Rule, where under the Customs Act 1960 of Singapore, a car leaving the island state must have a minimum of three-quarters of the tank full. Those who are found to violate this rule will be fined SG$500.

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