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The system is likely to be implemented by the end of the year as most fuel station operators have agreed, senior government leaders said yesterday.
The new measure will mean that Singaporeans who refuel in southern Johor will have to pay more for their fuel, by using pumps different from those used by Malaysians.
Likewise, Thais who make day trips to the border areas to fill their tanks will have to pay more.
'The system has two benefits, namely foreigners will pay for petrol at the market price and Malaysians will know the actual market price of petrol,' Deputy Prime Minister Najib Razak was quoted as saying by the Bernama news agency.
According to Domestic Trade Minister Shahrir Samad, nearly 500 fuel stations in southern Johor and near the Thai border will be affected.
These stations are located within 30km to 50 km of the border with Singapore and southern Thailand.
The announcement comes less than a month after the Malaysian government raised petrol prices by 41 per cent and diesel by 63 per cent at the pump on June 5, stoking public anger.
Malaysians today pay RM2.70 (S$1.13) a litre for petrol, and RM2.58 for diesel. The market prices of both items have been reported as being above RM3.
The steep fuel hike has caused the prices of goods and services in Malaysia to jump and to curb public anger, the government has promised that it will not raise fuel prices again for the rest of the year.
The government has also paid out a cash rebate of RM625 for Malaysian owners of smaller cars (2,000cc and below) and RM150 for motorcycle owners. It has also promised road tax cuts of RM200.
Yet, there has been no respite in global oil prices.
An aide to Datuk Shahrir told The Straits Times that the new system should be in place near both the Singapore and Thai borders before the year-end.
Mr Shahrir has said that the mechanism to differentiate foreign customers from locals would be left to station operators.
The monitoring system could be as simple as looking at the plate numbers of the vehicles that drive up to their stations. There could be other options, but he did not elaborate.
Meanwhile, in a separate development, Prime Minister Abdullah Badawi was quoted in reports yesterday as saying that the government would give more rebates to Malaysians in the eastern state of Sabah and Sarawak to help them cope with higher fuel costs.
WITH ADDITIONAL INFORMATION FROM REUTERS
