Unsubsidised RON95 Fuel Sales At RM3.22/litre Being Trialled Perlis

A new pilot project has been launched by the Malaysian Government which observes the establishment of petrol stations retailing unsubsidised RON95 fuel to foreign-registered vehicles.

This sees foreign-registered vehicles pumping RON 95 at a rate of RM 3.22/litre, which is RM1.17 costlier over the current subsidised price of RM2.05. As for diesel fuels, foreign-registered vehicles are subjected to purchases at un-subsidised prices too, which reads at RM3.45 per litre.

To prevent subsidy leakage to fuel smugglers, foreign-registered vehicles are only permitted to carry 20 litres of diesel per day at Malaysian petrol stations within 25 kilometres of the borders

According to KPDN’s recent video, the new Double-branded petrol station chain will spearhead this trial over a three-month period - February to April 2023 - in Padang Besar, Perlis, which is located close to the border between Malaysia and Thailand. Similar stations are poised for establishment in other border states such as Kedah, Perak, Kelantan, Johor, Sabah, and Sarawak.

KPDN's Minister Datuk Seri Salahuddin Ayub states that this a good step in tackling the problem of fuel smuggled out of the country via foreign-registered vehicles.

In the meantime, a new rule has been implemented where only two unsubsidised fuel stations, located in Padang Besar and Wang Kelian, will be the only places for foreign-registered vehicles to purchase diesel starting this month.

Along these lines, this matter will be addressed in the revised Budget 2023 tabling, which is scheduled to be discussed in the parliament on February 24.