KPDN DRAFTING NEW REGULATIONS TO BAN RON95 PETROL BY FOREIGN-REGISTERED VEHICLES

KUALA LUMPUR,  Jan 28  (Bernama) -- The Ministry of Domestic Trade and Cost of Living (KPDN) is drafting new regulations to explicitly prohibit the purchase of RON95 petrol by foreign-registered vehicles at petrol stations nationwide.

Its minister,  Datuk Armizan Mohd Ali, said the move involves introducing new regulations under Section 6 of the Control of Supplies Act 1961 to strengthen control over the distribution of subsidised RON95 petrol.

He explained that the current legal framework under Regulation 12A only prohibits the sale of RON95, allowing enforcement action to be taken against petrol station operators but not against owners or buyers of foreign vehicle registrations.

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“Through the new regulations that we are drafting, the prohibition will apply not only to sales but also to purchases. This means that individuals who buy, own or drive foreign-registered vehicles can also be subject to enforcement action,” he said during a question-and-answer session at the Dewan Rakyat today.

Armizan said KPDN is currently holding engagement sessions with relevant stakeholders, with the new regulations targeted to be finalised and enforced from April 1.

He was responding to a supplementary question from Datuk Andi Muhammad Suryady Bandy (BN–Kalabakan) on additional enforcement measures to curb leakage of RON95 subsidies, particularly at petrol stations in border areas.

To strengthen monitoring and enforcement at the retail level, Armizan said measures include periodic inspections at petrol stations to ensure compliance with the use of identity card mechanisms and enforcement of the ban on sales to foreign-registered vehicles.

Additional controls include a ban on fuel purchases outside vehicle tanks exceeding 20 litres without a special permit, as well as regular monitoring through logbooks and visit records at petrol stations in border areas.

He said enforcement efforts are also carried out through integrated operations with the Royal Malaysia Police (PDRM), Malaysian Armed Forces (ATM), Malaysian Maritime Enforcement Agency (MMEA), Royal Malaysian Customs Department (JKDM) and the Malaysian Border Control and Protection Agency (AKPS) to combat subsidy leakage and smuggling.

“KPDN will continue to strengthen its monitoring and enforcement capabilities to ensure the objectives of RON95 subsidy targeting are achieved, particularly through Ops Tiris and the nationwide collaborative initiative to combat manipulation and leakage, known as Kita Gempur,” he said.

Touching on the Essential Goods Distribution Programme (PBP), Armizan said improvements to prevent leakage include changes to the procurement method, with delivery companies or transporters appointed through an open tender system starting in 2023, replacing the previous direct appointment approach.

He added that claims from suppliers to transporters are now required to be recorded and supported with uploaded photographs to qualify for reimbursement.

“We are also exploring the use of advanced technology to enable more comprehensive monitoring and enforcement, ensuring essential goods reach interior and remote areas,” he said.

-- BERNAMA