The restriction on foreign card payments for RON95 petrol is a key step to strengthen subsidy integrity and signals a move towards broader, targeted reform.
KUALA LUMPUR: A new restriction banning the use of foreign credit and debit cards at self-service pumps for RON95 petrol, effective Wednesday, is viewed as a crucial step to fortify Malaysia’s fuel subsidy system.
This measure complements the existing ban on RON95 sales to foreign-registered vehicles, which also takes effect on the same day.
Petrol Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz described the initiative as a practical move to ease monitoring and improve station productivity through automated controls.
“This reduces reliance on manual monitoring by staff, especially with manpower constraints, and allows enforcement to be carried out more effectively around the clock,” he said.
He added that the system ensures station operations become more efficient and organised, though he noted physical monitoring must continue as some foreign vehicle owners may still use locally issued bank cards.
Domestic Trade and Cost of Living Ministry Enforcement director-general Datuk Azman Adam confirmed that purchases of RON95 using foreign cards will only be permitted at service station counters from Wednesday.
Pertubuhan Mesra Pengguna Malaysia deputy president Azlin Othman said the payment restriction is harder to manipulate than conventional methods but must be supported by strict on-ground enforcement.
She cautioned that potential loopholes remain, including the use of local representatives to conduct transactions on behalf of foreigners.
“This is not just about plugging leakages, but a clear indication that the current subsidy system is no longer relevant and must be restructured towards a more targeted approach,” Azlin stated.
She emphasised that leakages in RON95 subsidies have previously caused significant financial losses for the country.
Federation of Malaysian Consumers Associations president Datuk Dr N. Marimuthu said the measure could represent an early step towards wider subsidy rationalisation.
“The government must ensure public funds reach those who truly qualify,” he said, stressing the importance of transparency in policy implementation.
The policy adjustments come against a backdrop of global oil price volatility, driven by geopolitical tensions in West Asia that have pushed crude prices above USD 100 per barrel.
Prime Minister Datuk Seri Anwar Ibrahim recently announced a temporary adjustment to the Budi MADANI RON95 programme, reducing the monthly quota from 300 litres to 200 litres starting Wednesday.
He assured the public that the subsidised price of RON95 would remain unchanged at RM1.99 per litre.
