RON 95 at RM 3.22? Relax, it’s KPDN trialling Malaysia’s first subsidy-free petrol station to curb smuggling

The Ministry of Domestic Trade and Cost of Living (KPDN) has begun the pilot project of opening Malaysia’s first petrol station that only sells unsubsidised fuel to foreign-registered vehicles. RON 95 goes for RM 3.22/litre of RON 95, while diesel costs RM 3.45/litre.

Located in Padang Besar – the Perlis border between Malaysia and Thailand – the Double (that’s the name) station will be trialled for three months, from February to April 2023. There’s also plans to expand this project to other bordering states, such as Kedah, Perak, Kelantan, Johor, as well as in Sabah and Sarawak, reports Berita RTM.

Datuk Seri Salahuddin Ayub, KPDN’s minister, says that this initiative is a good move to counter the issue of fuels smuggled out of the country via foreign-registered cars.

Also read: KPDN – Targeted RON 95 petrol subsidies could be determined based on vehicle’s horsepower

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Datuk Seri Salahuddin Ayub

Laws dictate that only Malaysians are allowed to purchase the (heavily) subsidised RON 95 fuel, while foreigners are only allowed to fill up with unsubsidised RON 97. Ruling for diesel is a little different however: foreign-registered vehicles are only allowed to fill 20 litres of diesel.

Also read: MoF: Fuel subsidy to be reviewed, RM 28 billion subsidy cost for 2022 if no intervention

Source: RON 95 at RM 3.22? Relax, it’s KPDN trialling Malaysia’s first subsidy-free petrol station to curb smuggling

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