PDAM Seeks Fines For Foreign Vehicles That Pump RON95

Presently in Malaysia, the dealer faces a fine of up to RM1,000,000 or three years in jail if a foreigner purchases subsidised fuel from a local petrol station, but the foreigner escapes punishment.

Fed up with this regulation and the growing number of foreigners taking advantage of it, the Petrol Dealers Association of Malaysia (PDAM) dealers are now calling for legislation that would punish these drivers. They say that foreign vehicles should not be allowed to purchase subsidised RON95 fuel, and those who do so should be held accountable.


According to Gordon Lim, the association's communication and media secretary, it is challenging for petrol dealers to monitor foreign drivers who use credit cards at pumps located at the far end of stations to quickly refuel and pay.

“It is unfair to penalise petrol station dealers. The dealers do not want to sell RON 95 to foreigners. The profit margin in such transactions is minimal, so it’s not practical or worthwhile to break the law.

Lim added that Singaporean plates are identical to Sabahan plates, making it challenging to correctly identify vehicles registered in other countries. "As long as the buyers are not penalised, they will always keep trying," Lim said.


The Johor Domestic Trade and Cost of Living Ministry issued a reminder that foreign vehicles are not allowed to purchase RON95 petrol, following the circulation of videos showing out-of-towners filling their tanks with the subsidized fuel at petrol stations in the southern state.

Lim addressed the issue, emphasizing that it necessitates systemic reforms and enforcement rather than placing unreasonable demands on petrol dealers. He also highlighted the impracticality of stationing an attendant at every pump to monitor foreign vehicles due to the substantial increase in operating costs it would incur.
According to Lim, operators would suffer significant losses as a result of higher labour expenses due to the "razor-thin" margins under the automatic pricing model. This situation would also result in a greater need for immigrant workers because locals are typically unwilling to work as pump attendants, he says.