Enforcement of the ban on the sale of RON 95 petrol to foreign-registered vehicles is to take effect from April 1 this year, the ministry of domestic trade and cost of living (KPDN) has stated.
The move is to strengthen the existing legal framework, under which penalties were previously imposed solely on petrol station operators, said KPDN minister Datuk Armizan Mohd Ali. “Beginning April 1, the offence will also extend to drivers and owners of foreign-registered vehicles,” Armizan said.
The enforcement move follows a decision that was presented in Parliament on January 29, 2026, and the ministry revealed in late-January that new regulations are being drafted to enable action to be taken against owners of foreign-registered vehicles for the purchase of RON 95 petrol.
Enforcement would be intensified through the implementation of Ops Tiris 4.0 in response to heightened risks of fuel smuggling amid ongoing tensions in West Asia, said Armizan.
Last week, the ministry of finance revealed that it costs the Malaysian government over RM3 billion a month to subsidise RON 95 petrol at RM1.99 per litre under the Budi95 programme, as well as to keep the price of diesel at RM2.15 per litre for vehicles in the public transport and goods land transport sectors.
Earlier today, a report emerged claiming that the Malaysian government is planning to reduce the quota for subsidised RON 95 petrol, which currently stands at 300 litres per month. Sources told the publication that the move could be announced as early as this week.
Earlier this month, prime minister Datuk Seri Anwar Ibrahim, who is also finance minister, said that Malaysia would be able to maintain the current price of RM1.99 per litre for up to two months.
Should the reduction in quota proceed, it is not expected to affect the majority of RON 95 users as it was previously reported that the average consumption of subsidised fuel was 83 litres of petrol per month, and 90% of users eligible for Budi95 consumed less than 200 litres a month.
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