Malaysia Implements Ban on Foreign Vehicles Purchasing RON95 Petrol

The Malaysian government is set to enforce a ban on foreign-registered vehicles from purchasing subsidised RON95 petrol, effective April 1, 2026. This decision, announced by Domestic Trade and Cost of Living Minister Armizan Mohd Ali, aims to tighten control over fuel distribution and curb ongoing subsidy leakages, particularly in border areas. The new regulations will not only penalize petrol station operators but also individuals who buy or drive foreign-registered vehicles, marking a significant shift in enforcement policy.

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The move to ban foreign vehicles from accessing subsidised petrol comes amid persistent concerns regarding the leakage of fuel subsidies. The BUDI95 fuel subsidy scheme, launched on September 30, 2025, was designed to ensure that only eligible Malaysian citizens benefit from the reduced price of RON95 petrol. Despite this initiative, reports indicated that foreign vehicles were still able to exploit the system, prompting the government to draft stricter regulations under the Control of Supplies Act 1961.

M'sia govt looking to ban foreign vehicles pumping RON95 petrol

Armizan Mohd Ali, the Domestic Trade and Cost of Living Minister, has been at the forefront of this initiative, emphasizing the need for enhanced enforcement measures. The ministry is engaging with relevant stakeholders to finalize the new regulations, which aim to close existing loopholes that allow foreign vehicles to purchase subsidised fuel.

Malaysia to ban the purchase of RON95 petrol for foreign-registered vehicles from April 1

To facilitate enforcement, the ministry plans to utilize data analytics to monitor sales patterns at petrol stations, particularly in border regions. This includes tracking purchases through MyKad records and conducting periodic inspections. Additional measures will involve restricting fuel purchases exceeding 20 litres outside vehicle tanks without special permits and maintaining logbooks at border-area petrol stations.

M'sia govt looking to ban foreign vehicles pumping RON95 petrol

While the government aims to address subsidy leakages, there are concerns regarding the practicality of enforcing these new regulations. Critics argue that the measures may disproportionately affect legitimate foreign visitors and could lead to complications at petrol stations. Some Malaysian lawmakers have suggested harsher penalties for violations, including blacklisting foreign vehicles caught illegally purchasing RON95 petrol.

M'sia govt looking to ban foreign vehicles pumping RON95 petrol

In a recent session in the Dewan Rakyat, Armizan stated, “Through the new regulations that we are drafting, the prohibition will apply not only to sales but also to purchases.” He reiterated the government's commitment to ensuring that fuel subsidies reach their intended beneficiaries and combat manipulation and leakage effectively.

Malaysia to ban the purchase of RON95 petrol for foreign-registered vehicles from April 1

The new regulations are expected to be finalized and enforced by April 1, 2026. The government will continue to monitor the situation closely and adapt its strategies to ensure compliance and effectiveness in curbing subsidy abuses.

M'sia govt looking to ban foreign vehicles pumping RON95 petrol

• “Through the new regulations that we are drafting, the prohibition will apply not only to sales but also to purchases.” — Armizan Mohd Ali, Domestic Trade and Cost of Living Minister

M'sia govt looking to ban foreign vehicles pumping RON95 petrol