PETALING JAYA: The Petroleum Dealers Association of Malaysia (PDAM) has welcomed the government’s move to introduce new regulations to prohibit the purchase of subsidised RON95 petrol for foreign-registered vehicles, saying it finally places accountability on the real offenders.
PDAM said the move marks an important shift in the focus by holding the drivers who deliberately abuse the subsidy responsible rather than the petrol station operators.
“This recognition of purchaser liability is a longstanding position advocated by PDAM and marks an important step towards a more balanced and fair enforcement framework,” it said in a statement.
However, the association cautioned that the policy’s effectiveness and fairness would depend on how it is implemented, stressing that petrol stations are not enforcement bodies.
PDAM said petrol kiosks now operate on the self-service model, with limited staffing, making it impractical for dealers to conduct real-time checks on every vehicle, especially at high-volume locations.
“Enforcement responsibility must therefore rest primarily with authorities and systems, and not be shifted back onto dealers by default,” it added.
The government announced yesterday that new regulations under the Control of Supplies Act 1961 will be introduced to prohibit the purchase of subsidised RON95 petrol for foreign-registered vehicles from April 1.
PDAM also pointed out that enforcement often only occurs after viral videos or CCTV footages emerge, by which time the offenders would usually have left the country.
As a result, action is taken against dealers who had no intention of flouting the law or have any knowledge of such an offence being committed, it said.
“PDAM believes that punishment must match intent and impact. Dealers currently face penalties of up to RM1 million to RM1.5 million, even though their gain from a single transaction is negligible.
“In contrast, drivers who deliberately conceal number plates or misrepresent their vehicles (as locally registered) act with clear intent. Penalties imposed on perpetrators must therefore be meaningful, proportionate, and reflective of the wrongdoing,” it said.
The association also expressed concern over the appearance of doctored images showing fake foreign number plates as well as extortion threats to exploit the imbalance in enforcement. Some dealers have already lodged police reports.
“PDAM strongly supports the use of technology-enabled enforcement where feasible, such as systems that detect foreign-registered vehicles and restrict their access only to RON97 petrol,” the statement said.
“Where such systems are deemed impractical or disproportionately costly, enforcement focus and resources should be prioritised towards high-impact subsidy leakages, particularly syndicates and large-scale diversion activities,” the association added.
