Malaysians driving foreign-registered vehicles are not permitted to purchase RON95 petrol, as fuel subsidies in Malaysia are tied to vehicle registration rather than the nationality of the driver.
Domestic Trade and Cost of Living Ministry enforcement director-general Datuk Seri Azman Adam said the restriction is part of Malaysia’s long-standing fuel subsidy control framework, aimed at preventing leakages, particularly in border states where fuel price differences make smuggling and arbitrage highly profitable.
He said the ban on the sale of RON95 petrol to all foreign-registered vehicles, including motorcycles, has been in effect since June 17, 2022, and remains fully enforced.
“This policy ensures that subsidised fuel supplies are prioritised for Malaysian motorists and helps prevent abuse or misrepresentation that could affect fuel quotas or lead to subsidy leakages,” Azman said.
He added that the restriction also addresses operational challenges faced by petrol station operators, as verifying the identity of drivers is difficult, especially when transactions involve third-party payment applications.
“Even though RON95 prices are now liberalised, the ban remains necessary to prevent fuel diversion and to ensure sufficient supply for Malaysians,” he said.
Petrol station operators have also raised concerns that allowing Malaysians driving foreign-registered vehicles to purchase RON95 would require real-time identity verification, which is operationally impractical, costly and vulnerable to abuse, particularly at high-volume stations.
Sources said such a system would create loopholes that could be easily exploited by syndicates, including the use of foreign-registered vehicles to siphon subsidised fuel for resale or cross-border smuggling.
As a result, all foreign-registered vehicles, regardless of whether they are driven by Malaysians or foreigners, are only allowed to purchase unsubsidised fuels such as RON97 or diesel at market prices.
The policy ensures consistency in enforcement, prevents disputes at petrol stations, and reduces the burden on operators who are not authorised to verify citizenship documents.
The government has stressed that the measure is not discriminatory, but a necessary safeguard to protect public funds, noting that fuel subsidies cost billions of ringgit annually. Without strict controls, authorities warn that subsidy leakages would significantly undermine Malaysia’s fiscal sustainability.
