KPDN to Introduce New Fuel Sales Regulation for Foreign Vehicles

The Ministry of Domestic Trade and Cost of Living (KPDN) is poised to introduce new sales regulations of non-subsidised fuel for foreign vehicles, Bernama reports.

According to KPDN’s secretary-general Datuk Azman Mohd Yusof, the new sales regulations, dubbed as the ‘Border Economy – Supply of RON95 Petrol and Diesel without Subsidy’ program will only allow non-subsidised fuels to be sold for foreign-registered vehicles in states bordering the neighbouring countries.

“This step was taken to curb the issue (leakage) faced and does not have a negative impact on foreign vehicles that fill up the fuel. The price of fuel (RON95 and diesel) without the subsidy is still cheaper than that sold in neighbouring countries,” Datuk Azman said.

Prior to this program, KPDN has issued fuel sales regulations for foreign vehicles which granted them to only fill up 20 litres of RON95 petrol and diesel. Unfortunately, such regulations have raised the cases of foreign vehicles filling up subsidised fuels in limited quantities, but at multiple petrol stations.

“The leakage of subsidised RON95 and diesel in the states near the border is taken seriously by the KPDN because the subsidies that should be enjoyed by the people of this country are also enjoyed by foreigners,” the Sec-Gen added.

This program however, will not affect the current sales regulation of the RON97 Petrol, enabled to be sold for foreign vehicles without limit at an unsubsidised price of RM3.35 per litre, as for now.

A pilot programme on the new sales regulations will take place in Perlis, where several fuel stations near the Malaysia-Thailand border at Wang Kelian and Padang Besar will partake. Set to begin in Jan 2023, an impact study will be held within three months after this pioneering program starts, before further decisions to roll out in other bordering states in Malaysia will be made.

Aside from Perlis, other Malaysian states that are connected by roads with neighbouring countries are Kedah, Perak, Kelantan, Johor, Sabah and Sarawak.

As of writing, the retail price for RON95 petrol is RM2.05 per litre, whereas the Euro 5 diesel is on-sale for RM2.15 per litre.