Non-subsidised petrol stations open in Perlis – RM3.22/litre RON 95 for foreign vehicles

Minister of Domestic Trade and Cost of Living (KPDN), Datuk Seri Salahuddin Ayub, yesterday officiated the launch of a pilot project to supply unsubsidised RON 95 and diesel fuels for foreign vehicles. The first non-subsidised petrol stations, dubbed Double, are now open at Padang Besar and Wang Kelian, Perlis.

The pilot project will be carried out in Perlis for three months from February to April 2023 in order to evaluate the effectiveness of the programme. Following the pilot project, the ministry plans to expand the non-subsidised petrol stations to other border states, including Kedah, Perak, Kelantan, Johor, Sabah, and Sarawak.

Image: Salahuddin Ayub/Facebook

The project is an effort by the ministry to tackle subsidy leakage, as the subsidised RON 95 was only meant for Malaysian citizens. Under the Control of Supplies Act 1961, the sale of the RON 95 petrol to foreigners is a punishable act under Malaysian law, with a maximum fine of RM1 million and three years in jail.

Recently, photos of foreign vehicles filling up with the yellow-nozzled RON 95 petrol have been making rounds around the internet, prompting the government to step up enforcement of the sale of subsidised fuel to foreigners, alongside a proposal for a switch to targeted fuel subsidy for Malaysians based on household income.

RELATED: Foreign vehicles refuelling with RON95 should be reported

Image: Salahuddin Ayub/Facebook

At the time of writing, the unsubsidised RON 95 petrol is priced at RM3.22 per litre, or 57% higher than the subsidised pricing. For comparison, the non-subsidised RON 97 petrol that is available at regular fuel stations is priced at RM3.35 per litre. Similarly, pricing for the non-subsidised RON 95 petrol will also be floated according to market rates.

As for Euro 5 diesel, the non-subsidised pricing is currently set at RM3.45 per litre at the time of writing. Prior to the new stations, foreign vehicles fuelling up within 25 km of the nations’ borders are only allowed to purchase up to 20 litres of diesel, as the fuel is subsidised to a ceiling price of RM2.15 and RM2.35 respectively for the Euro 5 B10 and Euro 5 B7 formulations.

Through the implementation of the pilot project, a new Supply Controller Directive was issued for petrol station in Perlis, which bans the sale of diesel fuel to foreign registered vehicles starting February 1, 2023. Foreign diesel vehicles in Perlis will now have to visit the non-subsidised stations in order to fuel up.


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