Individuals purchasing subsidized RON95 petrol in Malaysia for foreign-registered vehicles may face legal repercussions as early as April 1, as the government prepares new regulations to address the issue.
New Regulations Targeting Foreign-Registered Vehicles
Currently, only petrol station operators are penalized for selling RON95 petrol to vehicles with foreign registration. Domestic Trade and Cost of Living Minister Armizan Ali stated that the new regulations will expand the prohibition to include purchasers, owners, and drivers of these vehicles.
“Through the new regulations that we are drafting, the prohibition will apply not only to sales, but also to purchases,” Ali said in the Dewan Rakyat on Jan. 28. “This means that individuals who buy, own or drive foreign-registered vehicles can also be subject to enforcement action.”
The decision to broaden the ban is intended to strengthen control over the distribution of the subsidized fuel.
The ministry is currently holding discussions with stakeholders, with the aim of finalizing and implementing the new regulations by April 1, according to reports from The Star.
These measures are a response to ongoing concerns about the leakage of RON95 fuel despite the introduction of the BUDI95 scheme, designed to restrict subsidies to Malaysian citizens and combat smuggling.
Malaysia’s BUDI95 fuel subsidy scheme, which provides eligible citizens with reduced-price RON95 petrol, was
launched on Sept 30, 2025
.
The ministry plans to monitor sales data and purchase records for both RON95 and diesel at border fuel stations as part of its enforcement efforts.
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