Malaysia looking to increase locations selling unsubsidised petrol in Johor, other states to foreigners

JOHOR BAHRU - Malaysia’s Domestic Trade and Cost of Living Ministry is working to identify a suitable location to expand the unsubsidised petrol station scheme in Johor, amid a recent dispute involving foreigners suspected to have been involved in

purchasing cheaper subsidised fuel.

Minister Salahuddin Ayub said that a pilot project of the programme had already been implemented under the Border Economy programme in Padang Besar and Wang Kelian in Perlis, the northern state that borders Thailand.

The implementation of the project since February has helped the government to save almost RM6 million (S$1.7 million) in fuel subsidies, he added.

“This is part of the government’s effort to reduce the cases of subsidised RON95 petrol purchases by foreigners as Johor is close to Singapore.

“We are currently looking into finding the strategic location (in Johor), and once we do, we will implement this programme,” he told reporters after an e-Learning programme launch in Johor Bahru on Saturday.

For the week ending June 28, the price of the highly subsidised RON95 petrol sold only to Malaysian motorists was set at RM2.05 per litre.

For the pilot programme in Perlis dedicated to selling unsubsidised fuel, RON95 petrol was sold to foreigners at a reported price of RM3.22 per litre.

Motorists with foreign-registered vehicles, regardless of nationality, are allowed to purchase the unsubsidised RON97 petrol, which is priced at RM3.37 per litre for the same period, but directly into their vehicle’s fuel tank apart from exceptional circumstances.

In Singapore, grade 95 petrol was sold at around $2.75 per litre as at Friday, according to price monitors at sgCarMart, with the higher grade 98 petrol priced at $3.22 per litre.

The minister was responding when asked to comment on the recent case of an altercation between a Grab food delivery rider and two Singaporeans at a petrol station in Sunway Iskandar, Iskandar Puteri near the Second Link for allegedly buying RON95 petrol with containers.

“The government is very clear in its policy that RON95 should only be sold to locals as it is one of the subsidised items in the country. Any petrol station owner or foreign individual who is caught violating this policy will face legal action,” said Datuk Seri Salahuddin.

“However, I was informed that based on CCTV footage, the Singaporean in the video did not get the chance to purchase the RON95 fuel,” he said, adding that the full report of the incident would be given to him on Monday.

On May 18, Malaysia’s Deputy Prime Minister Zahid Hamidi was reported saying that a pilot project on unsubsidised RON95 petrol and diesel supply projects at petrol stations had been implemented in Perlis.

The Domestic Trade and Cost of Living Ministry was in the final stages of increasing the number of petrol stations selling unsubsidised fuel in the states of Kelantan, Kedah, Perak, Sabah, and Sarawak, as well as Johor.

Iskandar Puteri police chief Rahmat Ariffin said on Friday that the police were looking for two Singaporeans involved in an argument with the food delivery rider on June 16.

The Singapore Police Force told The Straits Times on Friday that it has not received any request from Malaysian police regarding the Singaporeans.

A video capturing an argument between the delivery rider and the two suspects has been widely shared on social media. THE STAR/ASIA NEWS NETWORK