The Ministry of Domestic Trade and Cost of Living (KPDN) will introduce new regulations under the Supply Control Act 1961 that prohibit the purchase of subsidized RON95 petrol by vehicles with foreign registration numbers.
The new regulations through Section 6 of the act are expected to come into effect on April 1 and are an improvement to the existing ban which only focuses on petrol station operators, not owners or users of foreign vehicles.
With these new regulations, legal action can be taken against both parties, namely petrol stations and owners or users of foreign-registered vehicles.
This measure is aimed at ensuring more comprehensive and effective enforcement. Engagement sessions are being conducted with the Road Transport Department (JPJ) and border agencies to coordinate enforcement standard operating procedures (SOPs).
Enforcement includes periodic inspections at petrol stations, a ban on the sale of RON95 to foreign vehicles, control of purchases outside the tank, integrated operations with security agencies, as well as monitoring transactions using fleet cards and data analysis.
Data shows an increasing trend in cases in Sabah including Tawau and Kalabakan, from five cases in 2023, 13 cases in 2024, and 34 cases in 2025, with the value of seizures reaching RM40,993 last year.
The implementation of the RON95 subsidy targeting uses a data-based approach and analytical system, in line with previous diesel subsidy targeting experiences that successfully reduced leakage.
The ministry is optimistic that this move can close the loophole for subsidy manipulation and emphasizes that enforcement will be strengthened through an integrated operation, Ops Tiris, as well as national cooperation through the Movement to Combat Manipulation and Leakage (KITA GEMPUR) to ensure that the RON95 subsidy targeting objectives are achieved.
