Malaysia

RON95 petrol misappropriation declines following BUDI MADANI subsidy rollout

Data from the Ministry of Domestic Trade and Cost of Living shows a reduction in RON95 petrol fraud cases since the introduction of the BUDI Madani targeted subsidy

Updated 11 months ago · Published on 04 Nov 2025 6:10PM

RON95 petrol misappropriation declines following BUDI MADANI subsidy rollout
Malaysia’s Competition Commission intensifies action against cartels affecting essential goods and services - November 4, 2025

CASES of RON95 petrol misappropriation in Malaysia have shown a declining trend since the implementation of the BUDI Madani RON95 (BUDI95) targeted subsidy, according to the Ministry of Domestic Trade and Cost of Living (KPDN).

Minister Datuk Armizan Mohd Ali said this was confirmed through nationwide monitoring and enforcement operations.

“For the period from 31 August to 29 September, 71 cases were recorded with 32,229 litres of RON95 petrol seized, compared with 61 cases involving 17,724 litres of RON95 petrol confiscated following the implementation of targeted subsidies from 30 September to 29 October,” he said while wrapping up the Supply Bill 2026 debate for KPDN in the Dewan Rakyat today.

Armizan added that from January to 29 October, a total of 1,690 cases of RON95 misappropriation were recorded, with seizures valued at RM1.6 million, following 84,264 inspections nationwide under Ops Tiris 3.0.

He said KPDN had strengthened enforcement by deploying officers to eight Malaysia–Thailand border entry points and conducting integrated operations alongside the Royal Malaysia Police, Royal Malaysian Customs Department, Malaysian Maritime Enforcement Agency, and Road Transport Department to curb smuggling via unofficial land and sea routes.

Meanwhile, the Malaysia Competition Commission (MyCC) has focused enforcement efforts on three major cartel categories to ensure a competitive market and prevent excessive consumer prices.

Armizan said such a focus was crucial in curbing collusion that undermines government tenders, food prices, and basic services, protecting consumers from inflated costs.

“MyCC focuses its investigation and enforcement on three main types of cartels: first, bid-rigging cartels in government procurement; second, cartels in the food and agricultural product industries; and third, cartels in essential consumer services. Allegations that MyCC only focuses on minor technical issues or high-profile cases with no impact on the public are incorrect,” he said in his speech on the Supply Bill (Budget 2026) in the Dewan Rakyat today.

He emphasised that MyCC’s enforcement clearly addresses consumer needs, dispelling claims that the commission only pursues technical or high-profile cases.

Notable enforcement actions have included price-fixing cartels involving flower vendors in Cameron Highlands, ice manufacturers in Kuala Lumpur and Selangor, bakeries and confectioners in Sibu, tuition centre operators, general insurance companies, container depot operators, warehouse operators, and five poultry feed manufacturers.

Armizan stated that all parties involved faced combined financial penalties totalling RM550.13 million.

In addition, MyCC issued two proposed decisions against 81 umrah package operators and 22 daycare operators suspected of participating in price-fixing cartels that directly affect consumers. - November 4, 2025

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