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Without business from Singaporeans, Johor petrol kiosks say they will 'die' because as much as 90 per cent of their business comes from Singapore motorists.
It is understood the move will also hit petrol stations in the north patronised by Thais.
With Singaporeans barred from topping up at Johor stations within 50km of the Singapore-Malaysia border, they will have one fewer reason to shop in Johor Baru - which means hypermarts and restaurants there will also be hit.
The fuel ban, due to kick in on Friday, is aimed at stopping foreign motorists from reaping savings from Malaysian fuel, which cost the Malaysian government RM40 billion (S$17 billion) to subsidise last year.
The move will hit about 300 petrol kiosks in the designated 'ban' zones.
At BHPetrol, which sits near the Causeway, half the customers are Singaporeans, said kiosk assistant Chai Shao Chin, 37, who added:
'Die already lah, really die. Business will be down. There are so many kiosks, some will have to close shop.'
Mr Sallehuddin Saidon, 46, who runs a Shell station in Taman Sri Tebrau, where a food centre popular among Singaporeans is located, agreed, saying the ruling will 'cripple Johor's economy badly'.
Of his 1,000 weekday and 1,500 weekend customers, 40 per cent are Singaporeans.
Petrol kiosk operators hope the Petrol Dealers Association of Malaysia will protect their interests.
The Straits Times confirmed their fears: Most of a dozen Singapore motorists who were in JB yesterday said they will cut back on trips across the Causeway, since they will not bother driving to Sedenak or Kota Tinggi - about 50km away - for fuel.
The Land Transport Authority said about 16,000 local vehicles leave Singapore via the Woodlands and Tuas checkpoints daily.
Sales engineer Alvin Tan, 35, said when the rule takes effect, he will cut down his trips to Johor from eight times to once a month.
'I come here because of the savings. It is not worth it to drive so far up to get petrol. I might as well just spend in Singapore,' he said.
Retired cabby Jimmy Tan, 62, who visits his daughter in JB daily, suggested charging Singaporeans fuel at non-subsidised rates instead of barring them from buying any.
Subsidised petrol, regardless of brand, costs RM1.92 a litre, and diesel, RM1.58. Removing the subsidy will add RM1 to the cost.
Singapore businessmen in Johor also griped about the inconvenience the move will pose.
Mr Jaffar Ali, 61, a tour guide who takes visitors to JB's attractions twice a month, said his friends who own printing factories in Kulai, within 50km of the border, need to drive around to visit their factories.
He said: 'Does that mean they have to go to Kota Tinggi or back to Singapore for refills? It does not make sense.'
Petrol kiosks warn that a black market could arise from the ruling. Ms Sharon Kee, who runs a Shell kiosk, pointed out that people may smuggle fuel in local vehicles or come up with modified tanks.
But even as kiosk operators ask how the ruling will be enforced, they say they will comply with it because the fine of RM250,000 is just too hefty to risk getting caught.
A Johor police source told The Straits Times that checking where Singapore vehicles top up their tanks was certainly not the job of the police force.
The Johor department handling domestic trade and consumer affairs has so far received no guidelines from its headquarters on how the ruling will be enforced.
