Petrol stations located in border states will be barred from selling petrol and diesel to foreign-registered cars starting Friday (May 30). [Thestar]
Update - the plan has been postphoned. The northern border will start the ban on June 2 while southern border on June 9.
Update June 5 - the ban has been lifted following the new petrol scheme.
Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the move is aimed at plugging loopholes in the current subsidy system; but the move is temporary until the ministry could come up with better management of the subsidy system.
The ban will involve between 200 and 300 petrol stations, and extends up to 50 kilometres from the borders in Kedah, Kelantan, Perlis, Perak and Johor. Currently, petrol stations are not allowed to sell more then 20 litres of petrol to foreign vehicles.
A Singaporean friend was telling me that Malaysia is coming out with this rule to revenge the lost of Batu Puteh. It was just a joke, but it makes me wonder if there are any Singaporeans who actually thought about that and took it seriously.
The decision is set to raise some controversies. While it might help curbing the issue directly, it would lead to other matters like tourism and foreign relations. It’s easy to count the amount of subsidy saved from the new rule, but the intangible losses might be larger than what we would gain.
Actually, the logical way to coup with the issue is to reduce our petrol subsidy and increase our fuel price. The subsidies money could be better spent to improve our infrastructures and public transports, which in long term is the only way to reduce the mass consumption of petrol in our country.
The problem is whether the extra money saved from reducing the subsidy would be well spent and not wasted… we have seen too much mismanagement of public funds over the years that we have generally lost faith with our government obviously.
The snowball effect on other consumer goods will also be a concern, but it could be controlled with proper monitoring and management.
Reducing the subsidy is the only way to go… Malaysians have been pampered all these years; it’s time to have some reality check. Besides, the rich people are the ones that benefited most from the fuel subsidies anyway… it is not helping as much for the poor.
There are many advantages and disadvantages on petrol subsidies. I think is “all in one package” depends on the government’s economy policies. With our economy dropping down the stairs and elephants stomping through our coffers…whatever they’re doing or trying to do..to improve whatever, i just can’t stop thinking..
Time to change our government pls.
There are still loopholes in this managing of selling petrol and diesel to those using foreign cars. For example, one can park a car nearby, and walk to buy petrol using large cans. Or, pass a ringgit to someone passing-by, or ask a relative for free, to do the same. One who won Batu Putih, LOL!!! surely can think of many more ways, if each of them prefers to, in obtaining what is needed, within a system still with flaws.
Actually, it’s illegal to buy petrol using containers, be it Malaysians or foreigners… just that the law has never been enforced.
The situation from Singapore is not as bad compared to the Thai borders. Most Singaporeans that come to fill their tanks are filling their own tanks, where as some Thais are filling their tanks, go back to Thailand, empty their tanks and come back to fill again.
Frankly, 50km restriction won’t help much. It would only deter those small fishes… the real advantage taker probably won’t mind driving that extra miles to fill their tanks.
Regarding Thai borders..i have known some custom brokers near there, he told me scores of Malaysians have been smuggling petrol to Thailand for sale ( about 2-3years already). They modified their tanks that can fill up to 200 litres. They usually visit many station to get their tanks fulled, with cooperations from petrol attendances!! One day 2 trips (min.) = RM250 minus all costs, per month = RM7500… X100 bastards (min.) = RM750,000 (Malaysia punya wang)! and they are only “small fishes”.
What you heard is true. It has been happening for years, but it really got out of control since the fuel price was hiking like crazy in the past one or two years.
The 200 litres tanks are probably history now since our custom started to take the border check more seriously… but a full 60-80 litres tank can still do the damage.
Not only that the station attendants are working with it, lots of the station owners should know about it too… but chose to ignore what is happening, simply for the big $$$ notes.
Yet another inconsiderate ruling
“JUST ban foreign registered vehicles”
To save on government subsidies is not wrong but the method is too inconsiderate and insensitive to fellow citizens.
I really need to know how would a government just pass on ruling without plans to cater for the repercussions and implications that is interwoven into our everyday lives.
Eg. 1) Black Market
Backyard traders doing illegal sales and thus stocking up on petrol in a very unsafe condition.
I can’t imagine how hazadous it can be.
Eg. 2) Deliveries
Drivers doing multiple deliveries and visitations to factories. How do they plan their route. How will the ‘about to be married couples’ send their invitation cards. How do we our New Year visitations? Don’t we all have relatives and friends to visit?
Eg. 3) Businesses
If businesses are really affected by this ruling what will the government do to help these poor Entrepreneurs.
Affected businesses ranging from Car Workshops, Restraurants, Shopping Malls, Petrol Kiosks.
If businessess are to fail this way what happends to those jobless?
Eg. 4) Human Error
What happens if a forgetful/careless driver really did miss the last “Legal” petrol kiosk while heading towards JB customs from KL and no petrol kiosk would dare to help him? Which authority should he turn to?
Eg. 5) Costs
So who should bear the extra costs while trying to manage our route having to shun the banned 50km radius.
Indirectly we are shooing away tourism causing Malaysians travelling thru and fro the customs feel that it is redundant to stay here in Malaysia. Causing Housing occupancy rates to drop. Which will eventually affect the property prices.
Personally this ruling is worst than the RM 20.00 toll fee at the checkpoint.
Of course it is correct to reserve this government subsidies to Malaysians alone but too many will be so badly affected by this ruling.
Why can’t we just use our IC as proof that we are Malaysians and other documents to prove that the car belongs to the owner thus allowing them to legally pump petrols?
If this ruling is to really happen can the affected Malaysians cope with the affected economy slump in the affected areas.
Yet again who will be assisting them?
I don’t wish to see my hometown being turned in to an area where petty crimes & thievery become a way of life………..
Written by a sad Malaysian……
I agree with “sad Malaysian” comment. This will lead to crime even though Malaysia gov allow foreign car after some time. Human will perform unexpected to the foreign when there are poor.
Objective: To reduce burden on Gov’t due to across the board petrol subsidy.
Solution: No solution because unable to tinker with the word “subsidy”.
Target sighted: Ban foreigners from buying petrol or diesel - To also include Rich Malaysian w BIG cars, Expat. Mat Salleh, Legal as well as illegal Indonesian residing in M’sia.
TEMBAK!!!
Report: Malaysian working in S’pore but living in JB (driving S’pore registered car b’cos NOT allowed to drive M’sian registered car) were the main casualties. Rich Malaysian w BIG cars, Expat Mat Salleh, Legal as well as illegal Indonesian, driving M’sia registered cars, still enjoying Government’s subsidies.
Spot on Keith… it’s those drivers that are the biggest casualties with the rulling.
[...] rebate is probably aimed to curb the foreign vehicles issue, but they could be overlooking it by creating more confusions and controversies [...]