PETALING JAYA: If a foreigner buys subsidised fuel at a local petrol station, the dealer can be fined up to RM1mil or jailed for three years. But the foreigner gets away scot-free.
Exasperated by this situation and the increasing number of foreign nationals exploiting the situation, petrol dealers now want legislation to penalise the foreigners.
Petrol Dealers Association of Malaysia (PDAM) communication and media secretary Gordon Lim said the purchase of subsidised RON95 fuel by foreign vehicles should be outlawed, with the offender being held culpable.
He said it was difficult for petrol dealers to keep a watch on foreign cars that use petrol pumps located at the far end of stations and use credit cards to quickly fill up.
“It is unfair to penalise petrol station dealers. The dealers do not want to sell RON95 to foreigners. The profit margin in such transactions is minimal, so it’s not practical or worthwhile to break the law.
“As long as the buyers are not penalised, they will always keep trying,” said Lim.
After videos showing foreign cars filling up RON95 at petrol stations in the southern state went viral, the Johor Domestic Trade and Cost of Living Ministry (KPDN) issued a reminder that foreign vehicles are barred from buying RON95 petrol.
Lim said the issue had to be handled through systemic reforms and enforcement rather than imposing untenable conditions on petrol dealers.
He said there was no real method to easily identify vehicles with foreign registration plates, as Singapore’s plates were similar to those from Sabah.
Lim also said suggestions that an attendant be stationed at each pump to monitor foreign vehicles were not viable as it would drastically escalate operational costs.
With the “razor-thin” margins under the automatic pricing mechanism (APM), additional labour costs lead to substantial losses for operators.
Lim said it would also mean an increased reliance on foreign labour, as locals were not generally willing to be pump attendants.
“It would also defeat the self-service policy at petrol stations,” he said.
Asked if the issue would be resolved when the fuel subsidy rationalisation is implemented, Lim said PDAM was still in the dark about the matter. However, if subsidies are removed completely, there would be no issue.
The issue of Singapore-registered vehicles buying subsidised fuel has hit the limelight with thousands of cars expected to cross the Causeway into Johor during the Chinese New Year celebrations.
A Singapore-registered car was seen refuelling RON95 at a petrol station in Johor Baru a few days ago.
A video of the incident showing a female vehicle owner filling up at the far end of the station was widely circulated.
Several similar cases have also been captured on video in the past.
