Malaysia petrol dealers seek penalties for foreigners who buy subsidised fuel

PETALING JAYA - If a foreigner buys subsidised fuel at a local petrol station in Malaysia, the dealer can be fined up to RM1 million (S$304,000) or jailed for three years – but the foreigner gets away scot-free.

Exasperated by this rule and the increasing number of foreign nationals exploiting the situation, petrol dealers now want legislation to penalise these drivers.

Petrol Dealers Association of Malaysia communication and media secretary Gordon Lim said the purchase of subsidised RON95 fuel for foreign vehicles should be outlawed, with the offender being held culpable.

It is difficult for petrol dealers to keep watch on foreign car drivers who use pumps located at the far end of stations and credit cards to quickly fill up and pay up, he said.

“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 is not practical or worthwhile to break the law,” said Mr Lim.

“As long as the buyers are not penalised, they will always keep trying.”

The Johor Domestic Trade and Cost of Living Ministry issued a reminder that drivers of foreign vehicles are barred from buying RON95 petrol after videos showing out-of-towners filling up their tanks with the subsidised fuel at petrol stations in the southern state went viral.

Mr Lim said the issue has to be handled through systemic reforms and enforcement, rather than imposing untenable conditions on petrol dealers.

And there is no good method to easily identify vehicles with foreign registration plates, as Singapore’s plates are similar to those from Sabah.

He added that the suggestion to station an attendant at every pump to monitor foreign vehicles is not viable, as it would drastically escalate operational costs.

With the razor-thin margins under the automatic pricing mechanism, additional labour costs would lead to substantial losses for operators, said Mr Lim.

It would mean an increased reliance on foreign labour, too, as locals are generally not willing to be pump attendants, he said.

“It would also defeat the self-service policy at petrol stations,” added Mr Lim.

The issue of Singapore-registered vehicles buying subsidised fuel is in the spotlight, with thousands of cars crossing the Causeway into Johor during the Chinese New Year celebrations.

A Singapore-registered car was seen being refuelled with RON95 in Johor Bahru a few days ago. A video of the incident showing a woman filling up her tank at the far end of a station was widely circulated.

Several similar cases have also been captured on video in the past. THE STAR/ASIA NEWS NETWORK