Malaysia

State tightens fuel subsidy controls at border petrol stations

Authorities in Johor have ramped up enforcement against foreign vehicles misusing RON95 subsidies under the new BUDI Madani system, as fuel stations adapt to its rollout amidst minor teething issues

Updated 10 months ago · Published on 30 Sep 2025 1:22PM

State tightens fuel subsidy controls at border petrol stations
In the event of digital system downtime, consumers may still access the subsidy manually at the counter while awaiting verification by station personnel - September 30, 2025

THE Johor branch of the Ministry of Domestic Trade and Cost of Living (KPDN) has stepped up monitoring at petrol stations near the Malaysia–Singapore border to prevent foreign-registered vehicles from exploiting subsidised fuel prices under the newly implemented BUDI Madani RON95 (BUDI95) scheme.

Johor KPDN Director, Lilis Saslinda Pornoma, reaffirmed that the ban on foreign vehicles purchasing RON95 petrol remains absolute and must be strictly upheld by fuel station operators.

“There is no compromise. Any vehicle with foreign registration is strictly prohibited from refuelling with RON95. We believe our neighbouring countries are also aware of Malaysia’s firm stance on this matter,” she said.

Operators are reminded that subsidised RON95, priced at RM1.99 per litre, is reserved for Malaysian-registered vehicles only, while foreign vehicles are required to purchase the unsubsidised RON97.

“Monitoring and inspections will be intensified, even though it is not feasible to deploy enforcement officers at every station. We rely on our existing capacity, and cooperation from station operators and the public is vital,” she added during an inspection of the BUDI95 rollout at a petrol station on Jalan Yahya Awal, Johor Bahru, on Tuesday.

In the event of digital system downtime, consumers may still access the subsidy manually at the counter while awaiting verification by station personnel.

Lilis Saslinda also highlighted that a dedicated complaints platform has been established for the public to report any subsidy-related misconduct.

She urged owners of public transport and goods vehicles to promptly register with the MySubsidi Petrol Kenderaan Pengangkutan Darat (MySPPKS) system to qualify for the subsidy.

“We will hold a Customer Outreach Week from 1 to 7 October to assist taxi drivers, rental car operators, and freight transporters who have yet to register.

“If they’re unsure or facing difficulties with the online form, they are welcome to visit our Johor KPDN office for assistance,” she said.

‘Teething’ Issues

Meanwhile, early observations of BUDI95 implementation across 13 petrol stations—from Labok, Machang to Laloh, Kuala Krai—revealed generally smooth operations despite some common user challenges.

Expired driving licences, damaged ID card chips, and forgotten identification were among the recurring issues noted on day one. However, most users adapted quickly with the help of knowledgeable station staff, and there were no major disruptions to the system.

Some users were initially hesitant to hand over their identification, and a few opted to pay full price rather than claim the subsidy.

Mohd Asri Mohd Nor, a Fardu Ain teacher aged 50, told Sinar Harian that his initial concerns but was pleasantly surprised by the ease of the process.

“It only takes a moment—show your identification, pay the amount for the fuel, and in under two minutes, it’s done. I’m grateful to enjoy the government subsidy. This system also prevents misuse by irresponsible parties,” he said.

Labourer Nik Mohd Zaidi Zaki, 40, admitted to some initial confusion, noting that the pump displayed RM7.84 when refuelling his Honda Wave motorcycle—more than the usual RM6.

“I panicked at first, but the staff explained I only needed to pay RM6 as usual, and the rest was covered by the government. I was relieved—I thought I had to pay the extra,” he said.

Petrol station operator Ahmad Omar, 60, in Labok, Machang, observed that expired licences, faulty IC chips, and forgotten IDs were among the most frequent issues. He emphasised the importance of staff readiness in explaining the new procedures and encouraging users to keep their documentation updated.

In Laloh, Kuala Krai, staff member Nabila said many customers were still unfamiliar with the BUDI95 system, requiring repeated explanations and patience.

“The most common issue here is people not bringing or having lost their ICs. Some turned back, while others simply paid the unsubsidised price without question,” she said.

Despite these minor hiccups, she noted that operations under BUDI95 had been running smoothly since its launch, with Tuesday marking the peak of public response. - September 30, 2025

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