RON 95 strictly for locals
By Nik Naizi Husin

KUANTAN: Vehicles with foreign registration plates can only buy RON 97 fuel starting from Aug 1.

Enforcement officers will be placed at petrol stations, particularly in the border areas in Kedah, Perlis, Johor, Kelantan and Sabah and Sarawak, to ensure petrol kiosk operators do not sell subsidised RON 95 fuel to foreign-registered vehicles.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said: “Foreigners can no longer fill up RON 95 petrol which is priced at RM1.85 per litre now. Its sale is strictly meant for Malaysian-registered vehicles only.

“They can only buy RON 97 petrol as the fuel will no longer be subsidised but subjected to a managed float.”

He said that despite increasing the price of RON 95 and RON 97 by five sen per litre, the Government still had to subsidise 45% of the total price of both types of fuel and also liquefied petroleum gas.

Ismail Sabri also said that the sugar price increase of 25 sen per kilo should not be an excuse for traders and retailers to increase prices, especially food and drinks.

“We can deploy officers to monitor prices of food and drinks, but restaurant and food stall owners must be responsible and honest enough not to increase prices.

“Furthermore, their business would not be affected much,” he told reporters after Prime Minister Datuk Seri Najib Tun Razak launched the National Cooperative Day at MPK 2 Field here yesterday.

“For example, with the new price of sugar, the cost of making a glass of teh tarik will go up by 1.2 sen. So, there is no reason why the teh tarik price will go up by between 10 and 20 sen,” he said.

Ismail Sabri said he would meet producers, wholesalers and retailers on Monday to get their commitment not to raise prices.

He said the ministry would mobilise about 1,600 price observers and 2,000 enforcement officers throughout the country in efforts to curtail indiscriminate price increases.

“Report to the ministry if traders raise prices,” he advised the public.

And dealers have a say.

‘RON95 for locals only’ rule difficult to enforce, say dealers (The Star)

Sunday July 18, 2010

PETALING JAYA: An effective mecha­nism to bar foreign-registered vehicles from filling up with the subsidised RON 95 petrol has yet to be found.

Time is critical as the Govern­ment’s ruling will come into effect in two weeks’ time on Aug 1.

Esso Petroleum Dealers Asso­ciation Malaysia president Alang Zari Ishak said discussions were ongoing between the Government and petroleum dealers.

The dealers do not know how the Government is going to implement the decision.

“When customers pays with their credit cards, the station cannot control which fuel they buy. They can pick up any nozzle, be it the ones for RON 95 or RON 97,” he told The Star.

On a proposal to ban foreign-based credit cards at the pump, Alang Zari said such a move might not be in line with national policy and had repercussions from neighbouring governments.

Following the first round of the recent subsidy rationalisation, Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob announced that the sale of subsidised RON 95 petrol was strictly for Malaysian-registered vehicles.

He said foreigners could only buy the RON 97 petrol as the fuel was now subjected to a managed float.

Alang Zari, formerly the Petroleum Dealers Association of Malaysia president, said the initial proposal to use the MyKad was a possible solution although the move was objected by many parties.

Alang Zari said another option was to allocate each citizen a set monthly amount of subsidised fuel.

On a related matter, he pointed out there was an element of manipulation by oil companies before the adjustment in fuel prices.

“Before the price increase, there was no delivery of fuel. Excuses given included problems with transportation or depot.

“But right after the new price was announced, the problems went away,” he said.

Metzelder says:It has been a time foreign registered vehicles entered our country just to refill fuel, which are much cheaper than their country. With the new ruling, subsidised fuel will no longer enjoyed by them.


Domestic Trade, Consumerism and Co-operatives Minister Datuk Seri Ismail Sabri said the onus was on petrol station operators to ensure this ruling was heeded, adding that foreigners had no right to enjoy subsidised fuel.

Petrol dealers to lose licence if they sell RON95 to foreigners (The Star)
By Mazwin Nik Anis

Monday July 19

PUTRAJAYA: Petrol dealers risk losing their licence if they are found to be selling the subsidised RON95 to foreign-registered vehicles.

Enforcement will begin Aug 1.

Domestic Trade, Consumerism and Co-operatives Minister Datuk Seri Ismail Sabri said the onus was on petrol station operators to ensure this ruling was heeded, adding that foreigners had no right to enjoy subsidised fuel.

“This ruling is easy to implement. Petrol station operators need to ensure that foreign-registered vehicles use the pumps that have RON97.

“The government only wants Malaysians to enjoy subsidy. So, petrol dealers will have to be more vigilant and responsible in their business.

“If they fail to do so and are found to be selling RON95 to foreign registered vehicles, they risk having their licence revoked,” he told reporters after a dialogue with food and drinks manufacturers and restaurant operators on Monday.

Ismail Sabri had announced recently vehicles with foreign registration plates could only buy RON 97 fuel starting Aug 1 as RON 95 was still subsidised while the government was no longer subsidising the latter, which was now subjected to managed float.

On complaints by petrol dealers that the ruling was difficult to enforce, the minister said this was much easier than the policy of allowing foreign-registered cars to buy only 20 liters of petrol within 50km radium from border.

“We will have a dialogue with petrol dealers before this policy is enforced on Aug 1. We will also provide them with posters to inform foreign registered vehicle owners of this ruling,” he added.

Petrol dealers claim an effective mechanism to bar foreign registered vehicles from filling up with the subsidised RON 95 had yet to be found and that they did not know how the government planned to implement the decision.