Malaysia bans foreign cards at fuel pumps, but S’poreans still free to swipe for RON97

JOHOR BAHRU – Singaporean motorists who crossed into Johor Bahru on April 1, bracing themselves for a cashless headache at pumps due to a Malaysian ban on foreign cards, found that little had changed – at least for those buying RON97 petrol.

Despite the ban on foreign-issued credit and debit cards at fuel dispensers, The Straits Times found that Singapore-registered cards could still be used to pay directly for RON97 petrol at Petronas, Shell, Caltex and Petron stations in Johor Bahru.

Those whose transactions were declined could still pay at the counter using the same cards or cash.

The ban on the use of foreign cards for RON95 petrol purchases applies to fuel dispensers across the country. Another ban on the purchase of RON95 for foreign-registered vehicles also took effect from April 1.

The restrictions are meant to strengthen enforcement and prevent the misuse of subsidised RON95 petrol by foreign vehicles.

A driver of a Singapore-registered Volkswagen Touran, who wanted to be known only as Mr Chen, said he had no problem paying with his Singapore-issued debit card at the fuel dispenser. “I don’t pump in Johor often, and I didn’t know there is a ban,” he added.

A pump attendant at a Caltex station near Medini Educity said motorists can use their foreign cards only for RON97 petrol.

“I checked with the counter. Drivers can still pay with their foreign credit or debit cards at the pump,” said the pump attendant, known only as Mr Mohammad.

The foreign cards were also accepted at other stations farther into the city.

At a Petron outlet in Jalan Yahya Awal near downtown Johor Bahru, Singapore nurse Syafiq Mohamed was seen pumping RON97 into his Honda SUV.

“When I reached the petrol station, the staff gave me the option of paying directly at the dispenser or at the counter,” he said.

“Because I’m used to paying at the counter, the staff helped to activate the pump so I can pay exactly for the fuel amount I bought at the counter,” said Mr Syafiq, who refuels twice a month in JB.

Meanwhile, stations closer to the Causeway – where the bulk of cross-border traffic flows – appeared to be bracing themselves for closer scrutiny from the authorities.

A pump supervisor at a Petronas petrol station near the Sultan Iskandar Customs, Immigration and Quarantine Complex said that Domestic Trade and Cost of Living Ministry officials checked the area earlier in the morning to see if the new restriction was in place.

“We told them if we stopped people from paying using their foreign cards at the pump, this station would be congested because people would need to queue at the counter and wait for their turn to pay,” he said.

“So foreigners can still pay for fuel at the dispenser using their foreign cards. It’s the system we’ve had for years already.”

Some Singapore motorists lamented to ST that they may no longer benefit from rebate schemes linked to Singapore-issued cards, which offer cashback on overseas spending. Some of these cards have competitive exchange rates and no foreign transaction fees.

The new measure is part of actions against illegal purchases of subsidised RON95 for foreign-registered vehicles.

Under Malaysian law, subsidised RON95 has strictly been for Malaysia-registered vehicles. Malaysian citizens driving Singapore-registered cars are also barred from buying it.

Since 2010, the government has banned subsidised RON95 sales to foreign-registered cars under the Control of Supplies Act.

Earlier this year, it drafted new regulations to extend legal liability to buyers, and not just pump operators. This was partly to stop the abuse of the BUDI95 scheme introduced in September 2025, which allows eligible Malaysians to buy RON95 at RM1.99 per litre.

On Jan 14, a Singapore permanent resident was fined RM9,000 in the magistrate’s court in Kulai, Johor, after he was filmed pumping subsidised RON95 petrol into a Singapore-registered car with a partially covered registration plate.

Singapore motorists have long crossed into Johor Bahru to take advantage of the cheaper fuel. With oil prices soaring after the war in the Middle East led to the closure of the Strait of Hormuz and disrupted global supply, RON95 in Singapore now costs around $3.40 per litre.

This is double the price of Malaysia’s RON97, the cheapest grade legally available to foreign vehicles, at RM4.95 – or S$1.58 – per litre. Malaysia’s RON97 is also cheaper than Singapore’s lowest grade RON92, which costs $3.38 per litre.