Foreign-registered vehicles are not allowed to fuel up on RON 95 even though prices are floated, says KPDN

According to domestic trade and cost of living ministry enforcement director-general Datuk Seri Azman Adam, Malaysians driving foreign-registered vehicles are not allowed to buy RON 95 petrol. This is because the fuel subsidy is linked to vehicle registration and not the driver’s nationality.

As reported by NST, Azman explained the restriction was part of Malaysia’s long-standing fuel subsidy control framework aimed at preventing leakages, particularly in border states where price differentials made smuggling and arbitrage lucrative.

“The ban on selling RON 95 to all foreign-registered vehicles, including motorcycles, has been in effect since June 17, 2022, and remains in force. The policy ensures fuel supply is prioritised for Malaysian motorists and helps prevent abuse or misrepresentation that could affect quotas or lead to leakages,” he said.

Azman added restriction addressed operational challenges at petrol stations, where verifying the identity of drivers could be difficult, especially with third-party apps. “Even with RON 95 prices now liberalised, the ban continues to prevent diversion and ensure sufficient supply for Malaysians,” he said. In essence, RON 95 is only for Malaysian-registered vehicles.

On this matter, petrol station operators said allowing Malaysians in foreign-registered vehicles to pump RON 95 petrol would require real-time identity verification, which was operationally impractical, costly and vulnerable to abuse, especially at high-volume petrol stations.

If the current policy was not based on a vehicle’s registration and allowed Malaysians to fuel RON 95 into any vehicle, including foreign-registered ones, it would create a loophole that syndicates can exploit. For example, syndicates could use foreign-registered vehicles to siphon subsidised fuel for resale or cross-border smuggling.

As such, all foreign-registered vehicles, regardless of whether they are driven by Malaysians or foreigners, are only allowed to purchase unsubsidised fuels such as RON97 or diesel at market prices. This ensures consistency in enforcement, preventing disputes at petrol stations and reducing the burden on operators, who are not authorised to verify citizenship documents.