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Malaysia to Penalise Foreign-Registered Vehicle Owners Who Buy Subsidised RON95 Petrol Starting Apr 1

New rules will penalize individuals buying subsidized RON95 petrol in foreign vehicles to prevent subsidy leakage, with 10 cases involving Singapore-registered cars recorded in 2025.

  • Domestic Trade and Cost of Living Minister Armizan Ali announced the government is drafting regulations to penalise owners or drivers of foreign-registered vehicles buying subsidised RON95 petrol, with enforcement from April 1, 2026.
  • Amid continuing leakage despite BUDI95, Malaysia launched the BUDI95 fuel subsidy scheme on Sept 30, 2025 to limit subsidised RON95 to eligible citizens and curb smuggling, with 10 Singapore-registered cases recorded up to Oct 7, 2025.
  • The ministry is holding engagement sessions with stakeholders and targets finalising new enforcement rules from April 1, while police, armed forces, maritime enforcement agency, customs department, and border control agency coordinate nationwide enforcement and explore advanced monitoring technology.
  • Dealers have urged legislation to penalise foreigners, as enforcement included a US$2,850 fine on Jan 14 and 10 Singapore-registered cases up to Oct 7, 2025.
  • Parliamentary scrutiny of border leakage prompted Armizan Ali, Domestic Trade and Cost of Living Minister, to outline measures in response to Andi Suryady Bandy, aiming to secure control over RON95 distribution.
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Free Malaysia Today News broke the news in Kuala Lumpur, Malaysia on Wednesday, January 28, 2026.
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