New regulations to curb RON95 leakage, especially at borders from April 2026

THE government will introduce new regulations under the Control of Supplies Act 1961 to tighten enforcement against leakage of RON95 petrol subsidies, especially at the country's border areas, effective from April 1.

Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, said the implementation of the Budi MADANI RON95 targeted subsidy programme is under the supervision of the Ministry of Finance as the policy leader, while his ministry is responsible for regulating the implementation of the Subsidised Petrol Control System (SKPS) and enforcement at the retail level.

“In line with the full implementation of the RON95 Budi on 30 September 2025, the MyKad usage mechanism has been introduced to ensure that only eligible citizens aged 16 and above and holding a valid driving license can purchase RON95 at RM1.99 per litre.

“This approach aims to ensure that the subsidy is enjoyed by the target group and to curb leakage, including fuel smuggling activities in border areas,” he said during the question and answer session at the Dewan Rakyat today.

He said this in response to a question from Datuk Andi Muhammad Suryady Bandy (BN-Kalabakan) regarding the government’s comprehensive measures to ensure the effectiveness of petrol subsidy management after the implementation of the RON95 BUDI MADANI and to combat petrol smuggling at the Tawau-Indonesia border.

Armizan said that among the enforcement measures implemented were periodic inspections at petrol stations, a ban on the sale of RON95 to foreign-registered vehicles, control of purchases outside the tank, integrated operations with security agencies and monitoring transactions through the use of fleet cards and data analysis.

Responding to the issue of leakage that still occurs, he said the government is drafting new regulations under Section 6 of the Control of Supplies Act 1961 to extend the ban not only to the sale but also to the purchase of RON95 by foreign-registered vehicles.

“Currently, action can only be taken against sellers. Through this new regulation, buyers, including foreign vehicle owners or drivers, can also be subject to legal action.

“Currently, engagement sessions are being conducted with the Road Transport Department (JPJ) and border agencies to coordinate enforcement standard operating procedures (SOPs),” he said. - January 28, 2026