Kuala lumpur: The Ministry of Domestic Trade and Cost of Living (KPDN) is in the process of drafting new regulations to explicitly prohibit the purchase of RON95 petrol by foreign-registered vehicles across all petrol stations in the nation. Datuk Armizan Mohd Ali, the minister, announced this initiative, which aims to introduce regulations under Section 6 of the Control of Supplies Act 1961. This move is intended to enhance control over the distribution of subsidised RON95 petrol.
According to BERNAMA News Agency, the current legal framework under Regulation 12A only restricts the sale of RON95, allowing enforcement action against petrol station operators but not against owners or buyers of foreign-registered vehicles. The proposed regulations aim to change this by extending the prohibition to purchases, making individuals who buy, own, or drive foreign-registered vehicles liable for enforcement action.
Armizan shared that KPDN is engaging with relevant stakeholders, targeting the new regulations to be finalized and enforced by April 1. This announcement was made in response to a supplementary question from Datuk Andi Muhammad Suryady Bandy (BN-Kalabakan) regarding additional measures to address the leakage of RON95 subsidies, especially at petrol stations in border areas.
To bolster monitoring and enforcement at the retail level, Armizan noted that measures will include periodic inspections at petrol stations to ensure compliance with the identity card mechanism and enforcement of the sales ban to foreign-registered vehicles. Additional controls will include a ban on fuel purchases exceeding 20 litres outside vehicle tanks without a special permit, and regular monitoring through logbooks and visit records at border-area petrol stations.
Enforcement efforts will also be reinforced through integrated operations with agencies such as 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.
Armizan emphasized KPDN's commitment to strengthening its monitoring and enforcement capabilities to ensure the objectives of RON95 subsidy targeting are met, particularly through initiatives like Ops Tiris and the nationwide collaborative effort known as Kita Gempur.
Regarding the Essential Goods Distribution Programme (PBP), he mentioned improvements to prevent leakage, including changes to procurement methods. Delivery companies or transporters will now be appointed through an open tender system starting in 2023, replacing the previous direct appointment approach. Claims from suppliers to transporters will now require documentation and photographic evidence for reimbursement.
He concluded by stating that KPDN is exploring advanced technology to enable more comprehensive monitoring and enforcement, ensuring essential goods reach interior and remote areas effectively.