KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry (KPDN) may suspend or revoke the licence of a petrol station in Nibong Tebal, Penang, over suspected abuse of government fuel subsidies under the Budi Madani RON95 (Budi95) programme.
Its minister, Datuk Armizan Mohd Ali, said investigations were ongoing, with the police leading the probe and KPDN assisting following complaints against the station.
“A police report has been lodged over the alleged misuse of the subsidy programme, which involved the use of other individuals’ entitlements,” he said.
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He was speaking to reporters after a press conference on the announcement of the Deepavali 2026 Festive Season Maximum Price Scheme (SHMMP) at ST Rosyam Mart, Jakel Square, here, today.
Armizan said petrol station operators were required to hold a Controlled Goods Licence (CSA), in addition to a licence under the Petroleum Development Act (PDA), to operate their businesses.
“If investigations are completed and an offence is established, this would include manipulating records, which is a responsibility attached to holding a CSA licence.
“Secondly, the station would also have been involved in manipulating subsidies provided by the government,” he said.
He said KPDN would take firm action against any party found to have abused the subsidy system, given the substantial financial implications and the government’s commitment to helping the public.
“We do not want subsidies to be misappropriated by certain parties.
“The police have specific laws under which action can be taken, but KPDN will not compromise on this matter. We will suspend or revoke the CSA licence,” he said.
On Tuesday, the Finance Ministry announced that the station had been barred from selling subsidised RON95 petrol and diesel after suspicious transactions were detected.
It also withheld more than RM270,000 in subsidy payments to the station and suspended access to Budi95 subsidies for nine individuals, including the station owner and family members, pending further action.
The ministry said a review of the station’s transaction records had uncovered more than 1,000 transactions involving over 100,000 litres of petrol, with government subsidies exceeding RM270,000.
The investigation followed complaints from Budi95 recipients who alleged that their MyKad details had been used without their knowledge to purchase subsidised petrol.
