Malaysia Considers Ban on Foreign Credit Cards for RON95 Petrol Purchases

The Malaysian government is exploring measures to restrict the use of foreign-registered credit cards at petrol stations, specifically for the purchase of subsidised RON95 petrol. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced that this initiative is part of a broader strategy to prevent subsidy leakages and ensure that the RON95 subsidy benefits only eligible Malaysian citizens. The proposed regulations are set to take effect on April 1, 2026.

The Straits Times

Minister Armizan indicated that the new regulations will not only prohibit foreign-registered vehicles from purchasing subsidised petrol but will also allow for legal actions against individuals attempting to exploit the subsidy. He emphasized that the current regulatory framework primarily holds petrol station operators accountable, and the new measures aim to extend liability to the drivers of foreign vehicles as well. The ministry plans to enhance monitoring and enforcement operations, particularly in areas identified as hotspots for fraudulent activities.

The Straits Times

The RON95 petrol subsidy has been a significant aspect of Malaysia's fuel pricing strategy, aimed at supporting local consumers. However, concerns have arisen regarding the misuse of this subsidy by foreign-registered vehicles, prompting the government to take action. The proposed ban on foreign credit cards is seen as a necessary step to safeguard the integrity of the subsidy program.

Government to bar use of foreign credit cards at petrol stations

In his remarks, Minister Armizan stated, “Through this new regulation, prohibitions and legal action can be taken against owners or drivers of foreign-registered vehicles.” He also highlighted the importance of a collaborative approach among various government agencies to combat fraudulent activities related to the subsidy.

Government to bar use of foreign credit cards at petrol stations

While the government’s initiative aims to protect local consumers, some critics argue that the measures may disproportionately affect legitimate foreign visitors and could complicate transactions at petrol stations. Concerns have also been raised about the potential for increased enforcement burdens on petrol station operators.

The Straits Times

As the government prepares to implement these regulations, further studies and consultations are expected to refine the approach to enforcing the ban on foreign credit cards. The ministry will continue to monitor the situation and may adjust its strategies based on the effectiveness of the initial measures.

The Straits Times

• “We are seeing if this mechanism can be expanded.” — Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living

The Straits Times

• “Such actions are criminal offences, and those affected can lodge police reports,” — Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living

The Straits Times

• “This regulation is targeted to be completed and come into effect starting on April 1, 2026,” — Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living

Government to bar use of foreign credit cards at petrol stations